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.

---

Definitions:

Multiple Subsidiary

Refers to scenarios where a parent company owns more than one subsidiary, each operating as a separate entity but controlled by the parent.

Indirect Acquisition

The process of obtaining control over a company by acquiring another entity that already holds a controlling interest in the target company.

Ownership Interest

A legal or equitable right or stake in an entity, often represented by shares or units, giving the holder a claim on part of the entity's assets and earnings.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.