In order for an economy to shift its production possibilities curve rightward, it must:

Question

Quizplus · Accepted Answer

A shift in the production possibilities curve to the right implies an increase in the potential maximum output of the economy. This increase can result from an increase in the quantity or quality of resources (such as labor, capital, or natural resources) and/or an improvement in technology, which allows for more efficient use of those resources. Suffering resource unemployment or using resources more efficiently than at points along the curve may lead to slightly higher output levels from a given set of resources, but it would not cause a shift in the curve itself.

In Order for an Economy to Shift Its Production Possibilities