Exhibit 2-3

-Refer to Exhibit 2-3.If PPF? is the relevant production possibilities frontier,society may move to PPF? as a result of
A) an increase in resources.
B) a decrease in resources.
C) an increase in technology.
D) both a and c
E) both b and c

Question

Exhibit 2-3
 
-Refer to Exhibit 2-3.If PPF? is the relevant production possibilities frontier,society may move to PPF? as a result of
A) an increase in resources. 
B) a decrease in resources. 
C) an increase in technology. 
D) both a and c 
E) both b and c

Quizplus · Accepted Answer

PPF? represents an outward shift in the production possibilities frontier, which can occur due to either an increase in resources or an increase in technology. Therefore, choices A and C are both valid reasons for society to move to PPF?. However, there is no indication of a decrease in resources in the exhibit, so choice B can be ruled out. Additionally, choices E is incorrect because it suggests that society can move to PPF? due to a decrease in resources and an increase in technology, which is not possible in this case.

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF? Is the Relevant Production Possibilities