Figure 2-6 Which of the following will most likely shift the production possibilities curve for breadfruit and fish outward from AA to BB in Figure 2-6?
A) an improvement in the form of economic organization
B) lower investment and a reduction in the country's capital stock
C) an increase in the price of breadfruit
D) a decrease in the average number of hours worked

Question

Figure 2-6  Which of the following will most likely shift the production possibilities curve for breadfruit and fish outward from AA to BB in Figure 2-6?
A) an improvement in the form of economic organization 
B) lower investment and a reduction in the country's capital stock 
C) an increase in the price of breadfruit 
D) a decrease in the average number of hours worked

Quizplus · Accepted Answer

An improvement in the form of economic organization would increase the efficiency and productivity of the economy, which would allow for more breadfruit and fish to be produced with the same amount of resources. This would shift the production possibilities curve outward from AA to BB, indicating an increase in output potential for both goods. The other options would either decrease resources or increase the opportunity cost, resulting in a shift inward or along the curve.

Figure 2-6 Which of the Following Will Most Likely