A Production Possibilities Frontier Can Shift Outward If

question 198

Multiple Choice

A production possibilities frontier can shift outward if

• A)government increases the amount of money in the economy.
• B)there is a technological improvement.
• C)resources are shifted from the production of one good to the production of the other good.
• D)the economy abandons inefficient production methods in favor of efficient production methods.

---

Definitions:

Unprofitable Segment

A division or business unit within a company that does not generate profits and may incur losses.

Plant Assets

Long-term tangible assets that are used in the operations of a business and are not intended for resale, such as machinery, buildings, and land.

Differential Revenue

The difference in revenue generated from two different business decisions or periods, used to analyze the financial impact of those decisions.

Alternative Proposed Use

A potential use of resources or assets under consideration as an option different from their current application.