Figure 2.3
-In Figure 2.3, the move from production possibility curve XV to production possibility curve YZ could be caused by:
A) decreased unemployment.
B) a decline in technology.
C) more land, labor or capital.
D) all of the above.

Question

Figure 2.3
-In Figure 2.3, the move from production possibility curve XV to production possibility curve YZ could be caused by:
A) decreased unemployment. 
B) a decline in technology. 
C) more land, labor or capital. 
D) all of the above.

Quizplus · Accepted Answer

The move from curve XV to curve YZ indicates an increase in productive capacity, which can be achieved by having access to more land, labor, or capital resources. Choice A, decreased unemployment, could lead to a shift along the same production possibility curve but not to a new curve. Choice B, a decline in technology, would result in a shift inward towards the origin along the same curve, indicating a decrease in the productive capacity. Therefore, the best choice is C, more land, labor or capital.

Figure 2.3 -In Figure 2.3, the Move from Production Possibility Curve XV