Figure 2-7
-Refer to Figure 2-7. What would most likely have caused the production possibilities frontier to shift outward from A to B?
A) an increase in resources necessary to produce capital goods
B) an improvement in the technology of producing consumer goods
C) an increase in the overall level of technology in the economy
D) an increase in opportunity cost

Question

Figure 2-7 
-Refer to Figure 2-7. What would most likely have caused the production possibilities frontier to shift outward from A to B?
A) an increase in resources necessary to produce capital goods 
B) an improvement in the technology of producing consumer goods 
C) an increase in the overall level of technology in the economy 
D) an increase in opportunity cost

Quizplus · Accepted Answer

An outward shift in the production possibilities frontier (PPF) indicates an increase in the economy's capacity to produce goods and services. This can be achieved through an overall improvement in technology, which enhances productivity across the board, rather than improvements limited to specific sectors or increases in specific resources.

Figure 2-7 -Refer to Figure 2-7. What Would Most Likely Have Caused