Figure 2.3
-In Figure 2.3,the movement from production possibility curve XV to production possibility curve YZ could be caused by
A) decreased unemployment.
B) more land, labor, or capital.
C) a decline in technology.
D) all of the above

Question

Figure 2.3
-In Figure 2.3,the movement from production possibility curve XV to production possibility curve YZ could be caused by
A) decreased unemployment. 
B) more land, labor, or capital. 
C) a decline in technology. 
D) all of the above

Quizplus · Accepted Answer

The movement from production possibility curve XV to production possibility curve YZ suggests an increase in the economy's capacity to produce goods and services. This could be caused by an increase in the availability of resources such as land, labor, or capital. Option A, decreased unemployment, could be a contributing factor to the increase in available labor. Option C, a decline in technology, would result in a shift of the production possibility curve inward, not outward, so it is not a plausible explanation for the shift depicted in Figure 2.3. Therefore, the best choice is B, more land, labor, or capital.

Figure 2.3 -In Figure 2.3,the Movement from Production Possibility Curve XV to XV