Graph 2-5
-Refer to Graph 2-5.In the production possibilities frontier shown, the shift of the frontier from A to B was most likely caused by which of the following?

Question

Graph 2-5 
-Refer to Graph 2-5.In the production possibilities frontier shown, the shift of the frontier from A to B was most likely caused by which of the following?

Quizplus · Accepted Answer

A shift in the production possibilities frontier indicates that more output can be produced with the same amount of resources or that the same amount of output can be produced with fewer resources. The shift from A to B suggests that the economy has experienced a technological improvement in the production of clothing, which has made it possible to produce more clothing without sacrificing the production of food. Choices A and B suggest increases in the quantity of resources available, but they do not explain the increase in efficiency implied by a shift in the frontier. Choice C is too general and does not specify how the breakthrough would affect production.

Graph 2-5 -Refer to Graph 2-5.In the Production Possibilities Frontier Shown, the Frontier