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 but does not shift the vertical intercept.
C) the horizontal intercept rightward and the vertical intercept upward.
D) neither the horizontal intercept nor the vertical intercept.

Question

Quizplus · Accepted Answer

Unusually good weather for growing corn would increase the maximum possible output of corn without affecting the production capabilities for cars, thus shifting the vertical intercept upward (more corn can be produced) but leaving the horizontal intercept (maximum production of cars) unchanged.

Consider a Production Possibilities Frontier with Corn on the Vertical