According to the Production Possibility Model,if More Resources Are Allocated

question 44

Multiple Choice

According to the production possibility model,if more resources are allocated to the production of physical and human capital,then which of the following is likely to happen?

• A) Fewer goods will be produced for consumption today.
• B) The production possibilities frontier will be shift inward in the future.
• C) Future economic growth will decline.
• D) The country's total production will fall.

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Definitions:

Inventory

Items held for sale in the ordinary course of business, or supplies and raw materials that are used in production.

Partnership

A business structure where two or more individuals share ownership, profits, and liabilities.

Bonus

A financial reward given to employees or stakeholders beyond their normal compensation, often tied to performance or specific achievements.

Capital Balances

The amounts of money that partners or owners have invested in a business, as recorded in the accounts.