Figure 2.3 Figure 2.3 Shows Various Points on Three Different Production Possibility

question 3

Multiple Choice

Figure 2.3

Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. A movement from X to Y:

• A)could be due to a change in consumers' tastes and preferences.
• B)could occur because of an influx of immigrant labour.
• C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
• D)is the result of advancements in plastic production technology only, with no change in food production technology.

---

Definitions:

Captive Finance Company

Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it completely controlled by the parent company.

Manufacturer

A type of business or company that produces finished goods from raw materials in large quantities for sale.

Present Value

The present worth of a future amount of money or series of cash flows, considering a certain interest rate.