The Figure Given Below Represents the Production Possibilities Curve for Goods

question 78

Multiple Choice

The figure given below represents the production possibilities curve for goods and services in an economy.Figure 2.3

-Which of the following actions is most likely to cause a rightward shift in a production possibilities curve [PPC]?

• A)Shifting from the production of one product to the production of another product
• B)Shifting all resources to the production of one product
• C)Employing idle resources
• D)Using fewer resources in production
• E)Increasing the technological know-how used in production

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Definitions:

Installation Costs

Expenses incurred to place an asset into service and prepare it for its intended use.

Freight Costs

Expenses incurred by a company for transporting goods, which may include shipping, handling, and insurance fees.

Asset Retirement Costs

Costs associated with removing equipment or property from service and disposing of it in accordance with legal and regulatory guidelines.

Depreciable Asset

A tangible or intangible asset subject to depreciation, reflecting the decline in the asset's value over its useful life.