A Production Possibilities Frontier Can Shift Outward If

question 198

Multiple Choice

A production possibilities frontier can shift outward if

• A)government increases the amount of money in the economy.
• B)there is a technological improvement.
• C)resources are shifted from the production of one good to the production of the other good.
• D)the economy abandons inefficient production methods in favor of efficient production methods.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Package Differentiation

The process of designing product packaging in a unique way to make it stand out from competitors and appeal to consumers.

Product Line Extension

The addition of related products to an existing product line to cater to a broader segment of consumers without deviating from the core brand identity.

Civic Hybrid

The Civic Hybrid is a model of car produced by Honda, recognized for its combination of a gasoline engine and electric motor, aimed at achieving improved fuel efficiency and reduced emissions.