Referring to a Production Possibilities Curve and the Goods Being

question 20

Multiple Choice

Referring to a production possibilities curve and the goods being compared,depict the economic event.Assuming the United States was producing at full employment levels in the late 1980s,peace breaks out as the Cold War ends (guns vs.butter) .

• A)A movement from a point inside the curve to a point on or near the curve
• B)A movement from a point on or near the curve to a point inside the curve
• C)A shift in the entire curve to the right (outward)
• D)A shift in the entire curve to the left (inward)
• E)A movement along the curve

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Definitions:

Settlement

In financial terms, a settlement is the process whereby securities are delivered, usually against in exchange for payment of money, to fulfill contractual obligations, such as those arising from the sale of securities.

Wage Freeze

A policy or condition where an employer decides not to increase the wages of its employees for a certain period, often during economic downturns.

Plant Upgrades

Investments made to improve the efficiency, capacity, or environmental impact of industrial facilities.

Trade Unionism

A labor movement where workers unite to negotiate with employers over wages, benefits, and working conditions.