Refer to the information provided in Figure 2.6 below to answer the question(s) that follow. Figure 2.6 -Refer to Figure 2.6. Which of the following will shift an economy's production possibility frontier from ppf² to ppf¹? A) a decrease in the economy's capital stock B) an increase in production efficiency C) a change in consumer's tastes D) economic growth

Question

Quizplus · Accepted Answer

A shift from ppf² to ppf¹ in an economy's production possibility frontier (PPF) indicates a reduction in the economy's ability to produce goods and services. This can be caused by a decrease in the economy's capital stock, as it reduces the resources available for production, leading to a contraction of the PPF.

Refer to the Information Provided in Figure 2