Exhibit 2-3 Refer to Exhibit 2-3. If PPF₁ is the relevant production possibilities frontier, a shift to PPF₂ may depict A)economic growth. B)a decrease in resources. C)a decrease in technology. D)a simultaneous decrease in both resources and technology.

Question

Quizplus · Accepted Answer

A shift to PPF₂ would indicate an outward shift of the production possibilities frontier, which implies an increase in the economy's ability to produce more goods and services. This reflects economic growth.

Exhibit 2-3 Refer to Exhibit 2-3. If PPF1 Is the Relevant Production

Exhibit 2-3 Refer to Exhibit 2-3. If PPF₁ Is the Relevant Production