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:

Note Receivable

A financial asset representing a written promise to receive a specific sum of money at a future date.

Other Receivables

Financial claims against entities other than customers, which might include tax refunds, interest due, and insurance claims.

Noncurrent Assets

Noncurrent assets are long-term assets that are not expected to be converted into cash or used up within one year, including property, plant, and equipment.

Current Assets

Cash and other assets that are expected to be converted to cash or sold or used up, usually within one year or less, through the normal operations of the business.