Graph 2-6 -Refer to Graph 2-6.According to the Graph, the Shift of the Shift

question 54

Multiple Choice

Graph 2-6
-Refer to Graph 2-6.According to the graph, the shift of the production possibilities frontier from frontier A to frontier B was most likely caused by which of the following?

• A)an improvement in the technology of producing capital goods
• B)an improvement in the technology of producing consumer goods
• C)a general improvement in technology
• D)a reduction in the availability of resources

---

Definitions:

Compounded Annually

The method of calculating interest in which the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Monthly Payments

Regular payments made each month towards the repayment of a loan or financial obligation.

Finance

The management of money and other assets by individuals, companies, or governments.

Compounded Monthly

A method where interest is calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit, recalculated every month.