The production possibilities frontier will shift if there is a change in _____

Question

Quizplus · Accepted Answer

The production possibilities frontier shows the maximum combinations of two goods that can be produced with the given resources and technology. If there is a change in technology, it will affect the production process and enable the economy to produce more of one or both goods than before, causing the production possibilities frontier to shift outward. The other choices listed may affect the economy in other ways but would not directly impact the production possibilities frontier.

The Production Possibilities Frontier Will Shift If There Is a Change