An increase in the stock of capital will cause the
A) production possibility frontier to shift outward.
B) production possibility frontier to shift inward.
C) economy to move down the production possibility frontier.
D) economy to move closer to its production possibility frontier.

Question

Quizplus · Accepted Answer

An increase in the stock of capital expands an economy's capacity to produce goods and services, thereby shifting the production possibility frontier outward, indicating potential for greater production levels.

An Increase in the Stock of Capital Will Cause the