Consider Canada's Production Possibilities Boundary

question 56

Multiple Choice

Consider Canada's production possibilities boundary.Suppose a scientific breakthrough leads to a lower-cost method of producing battery-operated cars in Canada.The likely effect would be to move Canada's current production

• A)to a point beyond its new production possibilities boundary.
• B)to a point inside its new production possibilities boundary.
• C)possibilities boundary outward.
• D)possibilities boundary inward.
• E)above the level of U.S.production.

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Definitions:

Cap-and-Trade Program

An environmental policy tool that sets a limit on emissions and allows companies to buy and sell permits for the right to emit greenhouse gases.

Government Fixes

Interventions or measures taken by government authorities to correct or address economic, social, or environmental issues.

Property Right

The legal rights to possess, use, and dispose of assets, including both physical and intellectual properties.