The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-In recent years,several large Canadian- owned mining and resource companies have been sold to foreign owners.The immediate effect on Canada's production possibilities boundary is
A)a movement along.
B)a shift inward.
C)no change.
D)a shift outward.
E)a movement to a point beyond the boundary.

Question

The diagram below shows two production possibilities boundaries for Country X.
  FIGURE 1- 4
-In recent years,several large Canadian- owned mining and resource companies have been sold to foreign owners.The immediate effect on Canada's production possibilities boundary is
A)a movement along. 
B)a shift inward. 
C)no change. 
D)a shift outward. 
E)a movement to a point beyond the boundary.

Quizplus · Accepted Answer

The sale of Canadian-owned companies to foreign owners does not directly affect the country's production capacity or resources, so the production possibilities boundary remains unchanged.

The Diagram Below Shows Two Production Possibilities Boundaries for Country