Which of the Following Would Shift the Production Possibilities Frontier

question 152

Multiple Choice

Which of the following would shift the production possibilities frontier outward?

• A)an increase in the size of the labor force
• B)more efficient use of existing resources and technology
• C)the government prints more money
• D)the end of a strike by a labor union
• E)society's desire to produce more of one of the goods

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Definitions:

Indifferent

In finance, this refers to a state or condition where a particular choice does not make one better or worse off than another choice.

Interest Rate

The fee levied by a lender on a borrower for asset utilization, calculated as a percentage of the principal value.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Loan Payments

Regular payments made to repay borrowed money, including both principal and interest components.