Assume That a Change in Government Policy Results in Greater

question 380

Multiple Choice

Assume that a change in government policy results in greater production of both consumer goods and investment goods. We can conclude that

• A) the economy was not employing all of its resources before the policy change.
• B) the economy's production possibilities curve has been shifted to the left as a result of the policy decision.
• C) this economy's production possibilities curve is convex (bowed inward) to the origin.
• D) the law of increasing opportunity costs does not apply in this society.

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Definitions:

Psychological Desire

An emotional state that compels individuals towards a specific need or want, influencing behavior.

Unfulfilled

A state or condition where expectations, needs, or goals have not been met or achieved.

Lower-order Needs

Basic human necessities such as physiological and safety needs, according to Maslow’s hierarchy.

Psychological Development

The growth and change in an individual's mental functions and behaviors throughout their lifespan.