A production possibilities curve is plotted for a nation producing chairs and tables. Which of the following will cause a parallel shift in the production possibilities curve?
A) An intensive training program that increases the productivity of employees engaged in the production of tables
B) An intensive training program that increases the productivity of employees engaged in the production of chairs
C) An increase in the price of both chairs and tables
D) An increase in the availability of raw materials required for the production of both chairs and tables
D
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A record of all transactions between residents of the reporting country and residents of the rest of the world over a period of time is called the:
A) national income product accounts. B) balance of payments accounting system. C) accrual accounting system. D) none of the above.
Refer to the diagram. The degree of built-in stability in the economy could be increased by:
A. reducing government purchases so that the purchases line shifts downward but parallel to its present position.
B. changing the tax system so that the tax line is shifted downward but parallel to its present
position.
C. changing the tax system so that the tax line has a greater slope.
D. altering the government expenditures line so that it has a positive slope.