A rightward (an outward) shift of a nation's production possibilities curve could be caused by:

Question

Quizplus · Accepted Answer

An increase in resources would cause a rightward shift of a nation's production possibilities curve, as there would be more resources available to produce goods and services. Choice A is incorrect because a decrease in technology would cause a leftward shift of the curve, making production possibilities more limited. Choice C is incorrect because producing more consumer goods and fewer capital goods would not necessarily lead to an outward shift of the curve. Choice D is also incorrect because a decline in the labor force's level of education and skills would cause a leftward shift of the curve, making production possibilities more limited.

A Rightward (An Outward) Shift of a Nation's Production Possibilities