Increases in Resources or Improvements in Technology Will Tend to Cause

question 2

Multiple Choice

Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:

• A) shift inward or to the left.
• B) shift outward or to the right.
• C) become horizontal.
• D) become vertical.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the amount of production or business operations.

Cost Estimation Methods

Techniques used to predict the expenses likely to be incurred in the manufacturing of a product or the execution of a project.

Cost Equation

An equation used to estimate costs, typically in the form of fixed costs plus variable costs times the number of units.