According to the Production Possibilities Model, If More Resources Are

question 191

Multiple Choice

According to the production possibilities model, if more resources are allocated to the production of physical and human capital, then which of the following is likely to happen?

• A)Fewer goods will be produced for consumption today.
• B)The production possibilities frontier will shift inward in the future.
• C)Future economic growth will decline.
• D)The country's total production will fall.

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Definitions:

Intangible Assets

Non-physical assets held by a company that can produce economic benefits, such as patents, trademarks, copyrights, and goodwill.

Copyrights

Legal rights granted to an author, artist, or creator for the protection of their original works, preventing unauthorized reproduction.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders by a specified maturity date, including the borrowed principal amount and periodic interest payments.