Suppose a scientific breakthrough leads to a lower- cost method of producing battery- operated cars in Canada. The likely effect would be to move Canada's current production
A)possibilities boundary inward.
B)above the level of U.S. production.
C)to a point inside its new production possibilities boundary.
D)to a point beyond its new production possibilities boundary.
E)possibilities boundary outward.

Question

Quizplus · Accepted Answer

With the lower-cost method of producing battery-operated cars, Canada's production possibilities boundary would expand outward, allowing for the production of more cars than before. Therefore, the best choice is E, possibilities boundary outward.

Suppose a Scientific Breakthrough Leads to a Lower- Cost Method