If a Nation Devotes a Larger Share of Its Current

question 79

Multiple Choice

If a nation devotes a larger share of its current production to consumption goods,then

• A) its economic growth will slow down.
• B) its PPF will shift outward.
• C) its PPF will shift inward.
• D) some productive factors will become unemployed.
• E) it must produce at a point within its PPF.

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Definitions:

Interest Costs

Interest costs are the expenses incurred by borrowing funds, calculated as the interest rate multiplied by the principal amount of the debt.

Selling Costs

Expenses directly related to the sale of a product or service, including advertising, sales commissions, and packaging costs.

FOB Destination

A shipping term indicating that goods are delivered at the seller’s expense to a specific location, with ownership transferring to the buyer upon delivery.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for shipping costs and liability once the goods leave the seller's premises.