Which of the following factors can influence the production possibilities frontier in the future?
A)The amount of capital produced
B)A fall in the rate of inflation
C)A decrease in consumption in an economy
D)An increase in the tax rate
E)A legal reform that increases transaction costs

Question

Quizplus · Accepted Answer

The amount of capital produced can influence the production possibilities frontier (PPF) in the future because more capital can lead to increased production capacity, shifting the PPF outward.

Which of the Following Factors Can Influence the Production Possibilities