Consider a Production Possibilities Curve for an Economy Producing Bicycles

question 117

Multiple Choice

Consider a production possibilities curve for an economy producing bicycles and video game players. It is possible to increase the production of bicycles without sacrificing video game players if:

• A)​the production possibilities curve shifts outward due to technological progress.
• B)​the production possibilities curve shifts outward due to increased immigration (which enlarges the labor force).
• C)​the economy moves from a point inside the production possibilities curve to a point on the curve.
• D)​any of the above occur.

---

Definitions:

Floating Rate Bond

A type of bond whose interest payments vary with changes in market interest rates, also known as a floater or variable rate bond.

Variable Amount

A sum that can change over time or depending on conditions, in contrast to a fixed amount.

Coupon Interest

The fixed interest rate paid by a bond, typically annually or semi-annually.

Junk

A colloquial term for assets or securities that are of low quality, often associated with high risk and potential high return.