The process through which an economy's production possibilities curve shifts outward is:

The process through which an economy's production possibilities curve shifts outward is:
 a. full-employment management. b. investment.
  c. resource renewal. d. out-resourcing.

QUESTION 2

Which of the following is true?
 a. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time.
  b. As long as resources are scarce, output cannot be increased.
  c. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less.
  d. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.

QUESTION 3

With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
 a. passage of legislation reducing the workweek to 30 hours.
  b. instituting a tax policy encouraging consumption at the expense of investment.
  c. instituting a tax policy encouraging investment at the expense of consumption.
  d. an increase in the marginal income tax rate, which would reduce the work effort of individuals.

QUESTION 4

Which of the following statements is false?
 a. Marginal analysis is an examination of the effects of additions or subtractions from a current situation.
  b. The production possibilities curve shows the maximum combination of two outputs that an economy can produce, given its available resources and technology.
  c. Technology is the body of knowledge and skills applied to how goods are produced.
  d. Economic growth is illustrated as an inward shift of the production possibilities curve.

QUESTION 5

One source of economic growth is:
 a. producing inside the production possibilities curve.
  b. producing outside the production possibilities curve.
  c. increasing capital.
  d. discouraging profit-seeking entrepreneurs.