Consider a production possibilities frontier with corn on the vertical axis and cars on the horizontal. Unusually good weather for growing corn shifts
A) the vertical intercept upward but does not shift the horizontal intercept.
B) the horizontal intercept rightward and the vertical intercept upward.
C) the horizontal intercept rightward but does not shift the vertical intercept.
D) neither the horizontal intercept nor the vertical intercept.

Question

Quizplus · Accepted Answer

Unusually good weather for growing corn increases the maximum possible output of corn, shifting the vertical intercept upward, but it does not affect the production of cars, so the horizontal intercept remains unchanged.

Consider a Production Possibilities Frontier with Corn on the Vertical