An increase in the quantity of resources
A) shifts the PPF leftward.
B) shifts the PPF rightward.
C) moves the economy to a new point up along a given PPF.
D) moves the economy to a new point down along a given PPF.

Question

Quizplus · Accepted Answer

An increase in the quantity of resources allows an economy to produce more goods and services, which shifts the production possibility frontier (PPF) outwards or to the right. This is because a larger amount of resources, such as labor and capital, enables an economy to produce more output, allowing it to achieve higher levels of economic growth and development.

An Increase in the Quantity of Resources