In Terms of the Production Possibility Frontier, ________ Would Best

question 3

Multiple Choice

In terms of the production possibility frontier, ________ would best be shown by the production possibility frontier shifting outward.

• A) an increase in productivity attributable to an increase in the capital stock
• B) a decrease in the unemployment rate
• C) a shift in resources from capital goods to consumer goods
• D) a change in consumer tastes

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Definitions:

Public Good

This is a good that is non-excludable and non-rivalrous in consumption, meaning it can be used by everyone and one's use does not diminish another's.

Costs

The outlay or expenditure (monetary or otherwise) incurred by a business or individual in the process of producing or offering goods and services.

Benefits

The advantages or positive outcomes that come from specific actions, policies, or investments.

Principal-Agent Problem

The conflict that arises when the goals of principals, such as shareholders, differ from those of agents who make decisions on behalf of the principals, like executives.