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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is above point K, the next year's PPF would
A)shift outward along the horizontal axis farther than the new PPF shown in the figure.
B)shift inward along the horizontal axis.
C)shift outward along the vertical axis, not along the horizontal axis.
D)shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.
E)shift inward along the vertical axis.

Question

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The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is above point K, the next year's PPF would
A)shift outward along the horizontal axis farther than the new PPF shown in the figure. 
B)shift inward along the horizontal axis. 
C)shift outward along the vertical axis, not along the horizontal axis. 
D)shift outward along the horizontal axis, but not as far as the new PPF shown in the figure. 
E)shift inward along the vertical axis.

Quizplus · Accepted Answer

If the economy chooses a point above point K, it implies a focus on producing more cell-phone factories, which increases future production capacity, causing the PPF to shift outward more significantly along the horizontal axis.

- The Figure Above Shows How the PPF for Cell Phones