Figure 2-2 Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
A) a decrease in the labor force of the country
B) a sudden change in consumer preferences for more fish and less breadfruit
C) a major technological advance
D) a decrease in the capital stock

Question

Figure 2-2  Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
A) a decrease in the labor force of the country 
B) a sudden change in consumer preferences for more fish and less breadfruit 
C) a major technological advance 
D) a decrease in the capital stock

Quizplus · Accepted Answer

A major technological advance would allow for more efficient production of both breadfruit and fish, thus increasing the production possibilities for both goods and shifting the curve outward from AA to BB. A decrease in the labor force or capital stock would have the opposite effect and cause the curve to shift inward, while a sudden change in consumer preferences would shift the curve along the original production possibilities frontier.

Figure 2-2 Which of the Following Would Most Likely