In March a factory used new technology to produce its output. Then in August a fire destroys half the factory. The new technology shifted the factory's PPF _ and the fire shifted it _.
A) outward; outward
B) inward; outward
C) outward; inward
D) inward; inward

Question

Quizplus · Accepted Answer

The new technology allowed the factory to produce more output with the same inputs, which means it shifted the PPF outward. However, the fire destroyed half of the factory, which means the factory's ability to produce output was reduced, shifting the PPF inward.

In March a Factory Used New Technology to Produce Its