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:

Attendance Sheet

is a document used to record the presence of individuals at an event, meeting, or class.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding on the interest previously earned.

Original Principal

The initial amount of money borrowed or invested, before the addition of interest or profits.