The future location of the economy's production possibilities curve will be affected by:
A)the current division of domestic output between consumption and capital goods.
B)the rate of technological progress.
C)the growth of the economy's supplies of resources.
D)all of the above.

Question

Quizplus · Accepted Answer

The location of the economy's production possibilities curve will be affected by all of the factors listed. The current division of domestic output between consumption and capital goods will affect the amount of resources dedicated to future production. The rate of technological progress will affect the ability of the economy to produce goods and services efficiently, potentially shifting the curve outward. The growth of the economy's supplies of resources will provide the potential for increased production and also potentially shift the curve outward.

The Future Location of the Economy's Production Possibilities Curve Will