Author Question: With time, which one of the following strategies would most likely result in an outward shift in the ... (Read 59 times)

future617RT · **on:** Jun 30, 2018

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 2

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.