An Inward Shift of the Production Possibilities Curve Could Be

question 57

Multiple Choice

An inward shift of the production possibilities curve could be caused by all of the following except

• A)a war that destroys the nation's bridges,harbors and other infrastructure.
• B)a plague that wipes out one fifth of the population.
• C)a significant rise in the unemployment rate.
• D)30 years of neglect of the nation's railroad and interstate highway systems.

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Definitions:

Profits and Losses

The financial gain or deficit that a business experiences, calculated as the difference between total revenues and total costs.

Income Distribution

The way in which a nation’s total earnings are spread among its population, affecting the economic inequality among different groups.

Competitive Industry Y

An industry where a large number of firms compete against each other to sell their goods or services, making no single firm able to control the market price.

Substantial Losses

Significant financial deficits encountered by a business, usually indicating a much greater extent of economic damage beyond normal losses.