Figure 2-7 -Which of the Following Could Explain the Shift in the the Shift

question 34

Multiple Choice

Figure 2-7

-Which of the following could explain the shift in the production possibilities frontier from AB to AC in Figure 2-7?

• A) a productive improvement in petroleum production that has no effect on clothing production
• B) a productive improvement in clothing production that has no effect on petroleum production
• C) an increase in the size of the labor force that can produce either petroleum products or clothing
• D) oil drilling in Alaska is ended in order to protect the environment
• E) major oil reserves are discovered off the coast of Africa

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Definitions:

Recessionary Period

A time of economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.

Expected Return

The average return an investor anticipates receiving on an investment, considering all potential outcomes.

Expected Return

The potential return on an investment, taking into account both the probability of gains and the risk of loss.