Figure 2.3
-In Figure 2.3,the move 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 move 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 move from production possibility curve XV to production possibility curve YZ indicates an increase in the economy's potential output. This is most likely due to an increase in land, labor, or capital, which would shift the production possibility curve outward. Option A and C do not provide specific reasons for the shift and may or may not be relevant factors.

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