The Production Possibilities Curve for the Nation of Economagic Shifts

question 37

Multiple Choice

The production possibilities curve for the nation of Economagic shifts to the left. This could have been caused by:

• A) an increase in Economagic's labour supply.
• B) innovation in the production of goods in Economagic.
• C) a war that destroyed some of Economagic's resource base.
• D) unemployment among Economagic's workers.

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Definitions:

Ownership

The act, state, or right of possessing something, reflecting a legal or equitable title to an asset or property.

Premium Amortization

The process of gradually writing off the premium paid on bonds or other financial instruments over the life of the investment.

Bond Amortization Schedule

A table showing the periodic payments of an amortizing bond, including the allocation of each payment into interest and principal components over the life of the bond.

Interest Paid

The amount of interest expense that has been paid by the company during a specific period for borrowed funds.