Which one of the following would cause a production possibilities frontier to shift outward?
A)a decrease in the population
B)an increase in the production of consumption goods
C)a decision to fully utilize unemployed resources
D)bad weather
E)an increase in the stock of capital

Question

Quizplus · Accepted Answer

An increase in the stock of capital would increase productivity and efficiency, allowing for more output to be produced with the same amount of inputs. This would shift the production possibilities frontier outward.

Which One of the Following Would Cause a Production Possibilities