A Production Possibilities Frontier Can Shift Inward If There Is

question 81

Multiple Choice

A production possibilities frontier can shift inward if there is:

• A)an increase in the unemployment rate.
• B)a stable political environment.
• C)an improvement in technology.
• D)a larger work force.
• E)a larger capital stock.

---

Definitions:

Gross Method

An accounting method for recording inventory purchases without deducting discounts at the time of purchase.

Periodic Inventory System

An inventory system that, at the end of each accounting period, calculates the cost of the unsold goods on hand by taking the cost of each unit times the number of units of each product on hand.

Merchandise

Goods or products that a retailer buys to sell to consumers, especially in the context of physical goods stocked in a store.

Vouchers Payable

An accounting term referring to an obligation or liability of a company to pay a debt evidenced by a voucher.