Over time, an increase in a nation's stock of physical capital will
A) shift the production possibilities curve inward.
B) cause an economy to operate inside its production possibilities curve.
C) shift the production possibilities curve outward.
D) eliminate the basic economic problem of scarcity.

Question

Quizplus · Accepted Answer

An increase in a nation's stock of physical capital enhances its ability to produce goods and services, thus shifting the production possibilities curve outward, indicating economic growth.

Over Time, an Increase in a Nation's Stock of Physical