A Nation's Production Possibilities Curve Might Shift to the Left

question 355

Multiple Choice

A nation's production possibilities curve might shift to the left (inward) as a result of

• A) technological advance.
• B) increases in the size of the labor force.
• C) the depletion of its soil fertility due to overplanting and overgrazing.
• D) investing in more capital goods.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of currency.

Job Security

The probability that an individual will retain their job over a prolonged period without the risk of becoming unemployed.

Mechanized Agriculture

The use of advanced machinery and equipment in farming to increase efficiency, productivity, and scalability of agricultural operations.