Which of the Following Scenarios Would Cause an Outward Shift

question 45

Multiple Choice

Which of the following scenarios would cause an outward shift in the production possibilities curve?

• A)​temporary shutdown of mines due to frequent accidents
• B)​discovery of large mineral deposits
• C)​tougher environmental legislation
• D)shortage of skilled labor ​

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Definitions:

Fixed Overhead

Refers to the static expenses that occur regardless of the level of production or business activity, such as rent, salaries, and insurance.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages for workers who physically manufacture a product.

Raw Material

Fundamental materials in their original, altered, or partially processed forms that serve as inputs for manufacturing.

Selling and Administrative Expenses

Costs associated with selling products or services and managing the business, excluding production costs.