In order to shift the current production possibilities curve outward,an economy
A)Must use more of the existing resources.
B)Can raise the prices of goods and services to encourage firms to produce more.
C)Must find additional resources or better technology.

Question

Quizplus · Accepted Answer

In order to shift the production possibilities curve outward, an economy must find additional resources or better technology. This allows for more efficient use of existing resources or the addition of new resources, leading to an increase in the production of goods and services. Simply using more of the existing resources (choice A) may lead to diminishing marginal returns and may not be sustainable in the long run. Raising the prices of goods and services (choice B) may lead to higher inflation and could potentially cause economic instability.

In Order to Shift the Current Production Possibilities Curve Outward,an