With time, which one of the following strategies would most likely result in an outward shift in the production possibilities curve of an economy?
A) passage of legislation reducing the workweek to 30 hours
B) instituting a tax policy encouraging consumption at the expense of investment
C) instituting a tax policy encouraging investment at the expense of consumption
D) an increase in the marginal income tax rate, which would reduce the work effort of individuals

Question

Quizplus · Accepted Answer

Encouraging investment increases capital formation, leading to technological advancements and increased productive capacity, which shifts the production possibilities curve outward.

With Time, Which One of the Following Strategies Would Most