FIGURE 2-13

-Refer to Figure 2-13. Which of the following is a possible explanation for the shift of the production possibilities curve illustrated above?

Question

FIGURE 2-13
 
-Refer to Figure 2-13. Which of the following is a possible explanation for the shift of the production possibilities curve illustrated above?

Quizplus · Accepted Answer

A shift of the production possibilities curve outward, as implied in the question, suggests an improvement in the ability to produce goods. This can be due to a technological advance that affects both pizza and bicycle production, making it possible to produce more of both with the same resources.

FIGURE 2-13 -Refer to Figure 2-13. Which of the Following Is a the Following