Capital accumulation refers to the increase in physical or human capital in an economy. This means that there are more resources available to produce goods and services. As a result, the production possibilities frontier shifts outward, indicating that an economy has the ability to produce more of all goods and services than before.

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Capital Accumulation

Question 271

Multiple Choice

Capital accumulation

A) shifts the production possibilities frontier inward.
B) shifts the production possibilities frontier outward.
C) makes the production possibilities frontier steeper.
D) has no impact on the production possibilities frontier.

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