Exhibit 2-11 Production possibilities curves In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

Question

Exhibit 2-11  Production possibilities curves  In Exhibit 2-11, which of the following could have caused the production possibilities curve of an economy to shift from the one labeled A to the one labeled B?

Quizplus · Accepted Answer

An advance in technology could increase productivity, allowing the economy to produce more of both consumption and capital goods, shifting the production possibilities curve outward from A to B. The other choices would likely result in a shift inward or a movement along the existing curve.

Exhibit 2-11 Production Possibilities Curves in Exhibit 2-11, Which of the Following