If a society's production possibilities frontier shifts to the right

Question

Quizplus · Accepted Answer

An increase in a society's production possibilities frontier indicates that there has been an increase in its resources or technological progress, allowing for the production of more goods and services. Therefore, the correct answer is D - there is likely an increase in the society's resources. The other choices are incorrect because the society's standard of living is likely to increase (not decrease) with a rightward shift, the society may choose to produce more of both goods instead of having to choose a different mix (not B), and there is no requirement for a decrease in production in other industries.

If a Society's Production Possibilities Frontier Shifts to the Right