In Figure 1

question 102

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:

Magnitudes

Refers to the sizes, amounts, or extents of different entities or variables in a context, often used in economic analysis.

R&D

R&D stands for Research and Development, a business or government activity that involves the investment of resources to create new products, processes, or services or to improve upon existing ones.

Technological Advance

The development and application of innovative technologies that enhance efficiency, productivity, or capabilities in processes, products, or services.

Production Possibilities

The various combinations of goods and services that a society can produce using its available resources and technology.