With Time, Which One of the Following Strategies Would Most

question 238

Multiple Choice

With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?

• A) passage of legislation reducing the workweek to 30 hours
• B) instituting a tax policy encouraging consumption at the expense of investment
• C) instituting a tax policy encouraging investment at the expense of consumption
• D) an increase in the marginal income tax rate, which would reduce the work effort of individuals

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Definitions:

Establishing

The process of setting up or founding something, such as a new business, system, or relationship.

Skill-Based Pay

A method of compensation where employees are paid based on the skills and knowledge they possess, rather than their job title or status.

Developing Issues

Emerging problems or challenges that are in the process of becoming more prominent or severe.

Output-Related Pay

Compensation that varies depending on the quantity or quality of work produced by an employee.