Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to:
A)the use of the economy's resources in an efficient way.
B)an increase in the spending of business and consumers.
C)an increase in government purchase of the economy's output.
D)an increase in the quantity and quality of labour resources.

Question

Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to: 
A)the use of the economy's resources in an efficient way. 
B)an increase in the spending of business and consumers. 
C)an increase in government purchase of the economy's output. 
D)an increase in the quantity and quality of labour resources.

Quizplus · Accepted Answer

A shift in the production possibilities curve indicates an increase in the economy's capacity to produce goods and services. This could be due to an increase in the quantity and quality of labour resources through factors such as investment in education and training, immigration, or a decrease in population growth. Therefore, the most likely cause of the shift from AB to CD is an increase in the quantity and quality of labour resources, making option D the best choice.

Refer to the Diagram Below