An Increase in the Stock of Capital

question 89

Multiple Choice

An increase in the stock of capital:

• A)​causes a movement from a point on an economy's production possibilities curve to a point inside the curve.
• B)​causes an economy's production possibilities curve to shift inward over time.
• C)​causes an economy's production possibilities curve to shift outward over time.
• D)​has no effect on the position of an economy's production possibilities curve over time.

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Definitions:

Intellectual Convictions

Firmly held beliefs or opinions that are rooted in reasoning and knowledge rather than emotion or personal preference.

Pragmatist

An individual who approaches problems and situations with a practical and logical mindset, focusing on solutions and results rather than abstract principles.

Rationalization

The process of replacing traditional and emotional thought processes with reason and practicality, often associated with the development of bureaucratic systems.

Industrial Revolution

A period of major industrialization from the late 18th to early 19th century, which dramatically changed society with technological advancements and urbanization.