Figure 2-2
-Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
A) a decrease in the labor force of the country
B) a sudden change in consumer preferences for more fish and less breadfruit
C) a major technological advance
D) a decrease in the capital stock

Question

Figure 2-2 
-Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
A) a decrease in the labor force of the country 
B) a sudden change in consumer preferences for more fish and less breadfruit 
C) a major technological advance 
D) a decrease in the capital stock

Quizplus · Accepted Answer

A major technological advance would increase the efficiency of production, allowing more of both goods to be produced, thus shifting the production possibilities curve outward.

Figure 2-2 -Which of the Following Would Most Likely Cause the Production