Which of the following factors will cause the production possibilities curve to shift away from the origin?
A) Enforcement of compulsory retirement at age 60,for all workers.
B) The termination of all work on Albertan oil sands projects.
C) A doubling of all university fees.
D) New,improved technology.
E) Increased interest rates,which cause a decrease in expenditure on capital goods.

Question

Quizplus · Accepted Answer

New, improved technology allows for more efficient production and thus an increase in potential output, causing the production possibilities curve to shift outward. The other options (A, B, C, and E) would likely result in a decrease in potential output and a shift inward of the production possibilities curve.

Which of the Following Factors Will Cause the Production Possibilities