Consider a production possibilities frontier with corn production measured on the vertical axis and car production measured on the horizontal axis.Unusually good weather for growing corn shifts
A)the vertical intercept of the PPF downward and the horizontal intercept of the PPF leftward.
B)neither the horizontal intercept nor the vertical intercept of the PPF.
C)the horizontal intercept of the PPF rightward and the vertical intercept of the PPF upward.
D)the horizontal intercept of the PPF rightward but does not shift the vertical intercept of the PPF.
E)the vertical intercept of the PPF upward but does not shift the horizontal intercept of the PPF.

Question

Quizplus · Accepted Answer

Unusually good weather for growing corn increases the potential output of corn without affecting the production capabilities for cars, thus shifting the vertical intercept (corn production) upward while leaving the horizontal intercept (car production) unchanged.

Consider a Production Possibilities Frontier with Corn Production Measured on the Vertical