What Is True of an Increase in the Economy's Capacity

question 74

Multiple Choice

What is true of an increase in the economy's capacity to produce goods and services?

• A)It will cause inflation.
• B)It could be called economic growth.
• C)It will lower real GDP per capita.
• D)It will result in the production possibilities curve shifting in.

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Definitions:

Process

A series of actions or steps taken in order to achieve a particular end.

Homogeneous Products

Goods that are essentially identical in quality and function, making them indistinguishable from one another to consumers.

Process Costing Systems

Accounting methods used to allocate production costs to products or services in continuous processes, where the products are indistinguishable from each other.

Repetitive Products

Goods that are mass-produced, usually on an assembly line, with little variation in design for each unit produced.