Using Figure 1

question 85

Multiple Choice

Using Figure 1.5, if an economy is currently producing on PP2, which of the following would shift the production possibilities curve toward PP1?

• A)An increase in the quantity of labor available.
• B)A decrease in the amount of capital available.
• C)An increase in the level of unemployment above the normal level.
• D)An advancement in technology.

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Definitions:

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 aimed at preserving free competition by prohibiting monopolistic business practices.

Government Employee

An individual who works within the public sector, employed by government departments or agencies.

Right-to-Work State

A U.S. state where laws prohibit union security agreements between companies and workers' unions, meaning employment cannot be conditioned on union membership or dues payment.

Retailing

The process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit.