Which of the following events create an outward shift of the production possibilities curve?
a. The United States moves resources from the production of goods for domestic production to the production of goods for export.
b. Tax reductions reduce the cost and increase the volume of investment in factories, machinery, and research and development.
c. There is an exodus of young people to another country where there is more political freedom.
d. The unemployment rate falls from 33 percent to 12 percent.
b
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A perfectly competitive firm is a "price taker" because it cannot sell its product for more than the market price
a. True b. False Indicate whether the statement is true or false
Compared with a firm in a perfectly competitive market, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.