All of the Following Could Immediately or Eventually Lead to an Inward

question 163

Multiple Choice

All of the following could immediately or eventually lead to an inward shift of a nation's production possibilities curve, except

• A) emigration of skilled workers to other nations.
• B) a decline in the birthrate.
• C) an increase in the average skill level of all occupational groups.
• D) depletion and reduced availability of major energy resources.

---

Definitions:

Temporary Difference

A difference between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable or deductible amounts in future years.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total tax paid by the taxable income.

Statutory Tax Rate

The official tax rate set by law that companies and individuals must pay on their income.

Deferred Tax Liabilities

Tax liabilities that emerge from the temporary discrepancies between the accounting and tax valuation of assets and liabilities.