In Figure 1

question 105

Multiple Choice

In Figure 1.4, a shift of the production possibilities curve from PP1 to PP2 could be caused by

• A) An increase in the unemployment rate.
• B) Implementation of training programs that improve the skills of workers.
• C) A flu epidemic that makes many workers sick.
• D) Tougher pollution controls for the producers of plasma televisions and MP3 players.

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Definitions:

Produced Units

The total quantity of completed goods produced by a company over a given time frame.

Indirect Manufacturing Cost

Expenses related to production that are not directly tied to a specific product, such as maintenance and utilities.

Produced Units

The total number of units manufactured within a specific period.

Direct Manufacturing Cost

The total of direct materials and direct labor costs that are tied directly to the production process of a product.