Exhibit 2-18 Production Possibilities Curves

Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, a country is located at point A on its Year X production possibilities curve. In Year Y this same country is located at point B on its Year Y production possibilities curve. Which of the following could have brought about this outward shift in production possibilities curves?

A) More efficient production in Year X than in Year Y.
B) A natural disaster in Year X which leads to a destruction of resources.
C) Higher unemployment in Year X.
D) An advance in technology occurred in Year X.