Consider a Production Possibility Frontier [PPF] for the Current Year

question 47

Multiple Choice

Consider a production possibility frontier [PPF] for the current year that measures the output of capital goods on the horizontal axis and the output of consumer goods on the vertical axis.Which of the following statements is true?

• A)Technological progress will lead to a fall in current consumption resulting in a movement along the PPF.
• B)For the productive capacity of the economy to increase,current consumption should increase.
• C)An increase in investment in the current period will lead to a shift of the PPF in the future period.
• D)An increase in investment in the current period increases current consumption.

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Definitions:

Valid Contract

An agreement between two parties that is recognized by law and is enforceable by the legal system.

Undue Influence

A state of affairs whereby a person is so influenced by another that the person’s judgment is not his or her own.

Repudiate

To refuse to accept or be associated with, particularly in the context of rejecting the validity of a contract.

Thirty Working Days

A time period consisting of six weeks of business days, excluding weekends and public holidays.