Refer to the above graph.If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by:

Question

Quizplus · Accepted Answer

The shift from AB to CD on the production possibilities curve indicates an increase in the potential output of the economy, which is most likely caused by technological progress. This could be the result of advances in production processes, new innovations or discoveries, or improvements in the availability or quality of resources. Therefore, choice C is the best answer.

Refer to the Above Graph