An Inward Shift of the Production Possibilities Curve

question 27

Multiple Choice

An inward shift of the production possibilities curve

• A)represents an economic decline.
• B)means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
• C)means that the economy can produce more of both goods.
• D)All of the choices are true.
• E)represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.

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Definitions:

Kilometres

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances between places.

Harmonized Sales Tax

A combined tax that includes both federal and provincial sales taxes, applied to the purchase of goods and services.

Price Tags

Labels or stickers on merchandise displaying the price of the item.

Implied Value

The estimated value of an asset or company after considering factors not directly stated but suggested by available information.