Expanding the production possibilities frontier occurs as a result of
A) higher wages.
B) output growth.
C) a changing allocation of existing resources.
D) increased demand.

Question

Quizplus · Accepted Answer

Expanding the production possibilities frontier occurs as a result of output growth, which means an increase in the quantity and quality of resources available for production. This could be due to technological advancements, increased investment in capital goods, or improvements in human capital. Higher wages, increased demand, and changing allocation of existing resources may lead to a shift along the production possibilities frontier, but not expansion.

Expanding the Production Possibilities Frontier Occurs as a Result of