Which of the Following Events Would Allow the Production Possibilities

question 42

Multiple Choice

Which of the following events would allow the production possibilities curve to shift outward?

• A)The economy's capital stock declines.
• B)More teenagers enter the labor force.
• C)Technology is lost.
• D)People begin to retire at earlier ages.

---

Definitions:

Income Elasticity

A measure of how much the demand for a product or service changes relative to a change in consumers' income levels.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Price Elastic

Pertains to a measurement in economics of how responsive an economic variable's quantity is to a change in its price.

Total Budget

The complete amount of money allocated for a particular purpose, project, organization, or time period.