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

Question

Quizplus · Accepted Answer

Unusually good weather for growing corn increases the potential output of corn without affecting the production capabilities for cars, thus shifting the vertical intercept upward (more corn can be produced) but not affecting the horizontal intercept (production of cars remains unchanged).

Consider a Production Possibilities Frontier with Corn on the Vertical