As a General Rule, an Increase in the Capital Available

question 194

Multiple Choice

As a general rule, an increase in the capital available to a society

• A)reduces the slope of the production possibilities frontier, making it shallower.
• B)increases the slope of the production possibilities frontier, making it steeper.
• C)shifts the production possibilities frontier outward, away from the origin.
• D)shifts the production possibilities frontier inward, toward the origin.
• E)makes the production possibilities frontier more bowed out.

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Definitions:

Market

A facility that enables the transaction of various goods, services, and information between purchasers and vendors.

Production Technology

Refers to the methods, equipment, and software used to produce goods and services.

Firms' Costs

The expenses incurred by businesses in the production of goods or services, including labor, materials, and overhead costs.

Quantity Supplied

The extent of a good or service that merchants are willing and have the capacity to offer at a pre-determined price.