Narrabegin Exhibit 2.11 Production possibilities frontiers
-In 2002 a country, in Exhibit 2.11, is located at point A on its 2002 production possibilities curve. In 2003 this same country is located at point B on its 2003 production possibility curve. Which of the following could have brought about this shift in production possibilities curves?

Question

Narrabegin Exhibit 2.11 Production possibilities frontiers 
-In 2002 a country, in Exhibit 2.11, is located at point A on its 2002 production possibilities curve. In 2003 this same country is located at point B on its 2003 production possibility curve. Which of the following could have brought about this shift in production possibilities curves?

Quizplus · Accepted Answer

An advance in technology occurring in 2002 could have led to an outward shift in the production possibilities curve in 2003, allowing the country to produce more of both goods. Option A is incorrect because if production was more efficient in 2002, the country would have been able to produce more at point A and would have been located on the curve further to the right. Option B is incorrect because a natural disaster would lead to a shift inward in the production possibilities curve, limiting the country's ability to produce both goods. Option C is incorrect because higher unemployment would not necessarily cause a shift in the production possibilities curve.

Narrabegin Exhibit 2.11 Production Possibilities Frontiers