In terms of the production possibility frontier, ________ would best be shown by the production possibility frontier shifting outward.
A) an increase in productivity attributable to an increase in the capital stock
B) a decrease in the unemployment rate
C) a shift in resources from capital goods to consumer goods
D) a change in consumer tastes

Question

Quizplus · Accepted Answer

An increase in productivity attributable to an increase in the capital stock would lead to an outward shift in the production possibility frontier, indicating an economy can produce more of both goods with the same amount of resources.

In Terms of the Production Possibility Frontier, ________ Would Best