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

---

Definitions:

Fair Value Approach

A method of valuation to determine the appropriate price level for an asset or liability based on current market conditions.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving weight to some numbers more than others.

Earnings Per Share

A financial metric calculated by dividing a company's profit available to common shareholders by the average number of outstanding shares, indicating the profitability per share.

Stock Split

The division of a company's existing stock into multiple shares to boost the liquidity of the shares, although the market capitalization remains the same.