Figure 51 the Figure Shows a Linear Production Possibility Curve Representing

question 56

Multiple Choice

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​.
-Refer to figure 5.1. An increase in the country's gross domestic product will cause:​

• A)​no change in the production possibility curve of the country.
• B)​an upward movement along the production possibility curve.
• C)​a downward movement along the production possibility curve.
• D)an ​inward shift in the production possibility curve.
• E)​a rightward shift in the production possibility curve.

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Definitions:

Fixed Duration

A term or period of time that is set and unchangeable, often found in contracts or agreements specifying the length of commitment.

Employment Contract

A legally binding agreement between an employer and an employee that outlines the terms and conditions of employment.

Fourfold Test

A test for employment based upon ownership of tools, control, chance of profit, and risk of loss.

Risk of Profit

The possibility of encountering losses or gains in financial investments due to market fluctuations.