Figure 2-10 -Refer to Figure 2-10.The Shift of the Production Possibilities Frontier

question 257

Multiple Choice

Figure 2-10
-Refer to Figure 2-10.The shift of the production possibilities frontier from A to B illustrates

• A) simultaneous technological advances in the battery and bagel industries.
• B) a reallocation of resources away from the production of bagels and toward the production of batteries.
• C) economic growth.
• D) All of the above are correct.

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Definitions:

Current Account

The section in a nation’s international balance of payments that records its exports and imports of goods and services, its net investment income, and its net transfers.

Investment Income

Income earned from the investment of capital in assets such as stocks, bonds, real estate, or other investment vehicles.

Dollar/Yen Market

The foreign exchange market involving the trading of US dollars and Japanese yen.

Appreciate

To increase in value or price, often in the context of financial investments or currency valuations.