Which of the Following Will Make a Production Possibilities Frontier

question 130

Multiple Choice

Which of the following will make a production possibilities frontier shift outwards?  

• A) a decrease in capital stock 
• B) a decrease in resource availability 
• C) an increase in unemployment 
• D) an improvement in technology

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Definitions:

Flexible Budget

A financial plan that shifts in response to alterations in activity or volume.

Overhead Costs

Expenses not directly attributable to the production of goods or services, such as rent, utilities, and administration.

Flexible Budgets

A budget that adjusts or flexes with changes in volume or activity, allowing for a more accurate comparison of actual spending with budgeted amounts for different levels of activity.

Actual Overhead

The real costs incurred for indirect materials, labor, and expenses in operating a business.