Capital accumulation definitely
A) has no impact on the production possibilities frontier.
B) shifts the production possibilities frontier inward.
C) makes the production possibilities frontier steeper.
D) shifts the production possibilities frontier outward.

Question

Quizplus · Accepted Answer

Capital accumulation refers to the growth of a country's stock of capital goods, such as buildings, machinery, and equipment, which enhances its capacity for production. This increase in productive capacity allows the economy to produce more goods and services than before, effectively shifting the production possibilities frontier (PPF) outward. The PPF represents the maximum combination of goods and services that can be produced by an economy with its existing resources and technology, so an outward shift indicates an expansion in production capabilities.

Capital Accumulation Definitely