In March a factory used new technology to produce its output. Then in August a fire destroys half the factory. The new technology shifted the factory's PPF ________ and the fire shifted it ________.
A) inward; outward
B) outward; inward
C) outward; outward
D) inward; inward

Question

Quizplus · Accepted Answer

The new technology would increase the factory's efficiency and production capabilities, shifting the Production Possibility Frontier (PPF) outward. The fire, by destroying half the factory, would reduce its production capabilities, shifting the PPF inward.

In March a Factory Used New Technology to Produce Its