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:

Commodity

A fundamental merchandise in commerce that can be swapped with other merchandise of a similar nature.

Maximise

To increase to the greatest possible amount or degree within a given set of constraints, often used in the context of profit or utility maximization.

Input

A resource or component used in the production process to produce goods and services.

Production Function

A production function is a mathematical model that describes the relationship between inputs used in production (like labor and capital) and the output produced.