What Is the Effect of an Increase in the Stock

question 39

Multiple Choice

What is the effect of an increase in the stock of capital on an economy's production?

• A)It causes an economy's production possibilities curve to shift inward over time.
• B)It causes an economy's production possibilities curve to shift outward over time.
• C)It has no effect on the position of an economy's production possibilities curve over time.
• D)It causes a movement from a point on an economy's production possibilities curve to a point inside the curve.

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Definitions:

Frustration Aggression Hypothesis

A theory suggesting that frustration, or the blockage of achieving a goal, leads to aggressive behavior as a form of displaced reaction.

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.

Displacement

A defense mechanism where emotional impulses are redirected from the original object to a safer or less threatening object.

Attachment Theory

A psychological model that describes the dynamics of long-term interpersonal relationships between humans, emphasizing the importance of attachment in personal development.