Which Statement Is True

question 192

Multiple Choice

Which statement is true?

• A)On the production possibilities frontier we have zero unemployment.
• B)On the production possibilities frontier 95 percent of the labor force is employed.
• C)To get out of a recession, we must produce at some point beyond our production possibilities frontier.
• D)To have economic growth, we must push the production possibilities frontier inward.

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Definitions:

Foreign Direct Investment

Investment by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Insourcing

involves bringing processes or services back in-house, which were previously outsourced to external companies.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business operation.

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, but operates in a country different from where the parent company is established.