An Increase in Productivity as a Result of a New

question 65

Multiple Choice

An increase in productivity as a result of a new technology would cause the production possibilities frontier to:

• A) shift in.
• B) shift out.
• C) not move until society chooses to move it.
• D) become more meaningful in policy decisions.

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Definitions:

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.

Portfolio Weight

The percentage composition of a particular holding or investment relative to the total value of the portfolio.

Expected Return

The forecasted amount of profit or loss an investment is projected to generate, expressed as a percentage of the total invested capital.

Portfolio Weight

The percentage composition of a particular holding in relation to the total value of the portfolio, used to assess diversification and risk.