An Inefficient Allocation of Resources or Unusually High Unemployment

question 88

Multiple Choice

An inefficient allocation of resources or unusually high unemployment:

• A)​causes the production possibilities curve to shift inward.
• B)​causes the production possibilities curve to shift outward.
• C)​can each be illustrated by a point inside the production possibilities curve.
• D)​can each be illustrated by a point outside the production possibilities curve.

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Definitions:

Pension Fund

A pool of funds accumulated from contributions to provide retirement benefits to employees.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, expressed as a yearly rate.

Postemployment Benefits

These are benefits, such as pensions or health insurance, which employees are entitled to receive after their employment has ended.

GAAP

Widely recognized accounting norms and guidelines that are practiced within the United States.