-The shift in the production possibilities curve shown in Diagram 26.1c reflects
A) an increase in resources used in the production of both goods.
B) a decrease in resources used in the production of both goods.
C) an decrease in resources used in the production of bamboo only.
D) an decrease in resources used in the production of coconuts only.

Question

-The shift in the production possibilities curve shown in Diagram 26.1c reflects
A) an increase in resources used in the production of both goods. 
B) a decrease in resources used in the production of both goods. 
C) an decrease in resources used in the production of bamboo only. 
D) an decrease in resources used in the production of coconuts only.

Quizplus · Accepted Answer

Without the ability to view "Diagram 26.1c," I cannot provide a specific answer to the question regarding the shift in the production possibilities curve (PPC). However, I can explain what a shift in the PPC generally indicates:
a. An increase in resources used in the production of both goods: This would typically cause an outward shift in the PPC, indicating that the economy can now produce more of both goods due to increased resources or improved technology.
b. A decrease in resources used in the production of both goods: This would typically cause an inward shift in the PPC, indicating that the economy can now produce less of both goods due to decreased resources or a decline in technology.
c. A decrease in resources used in the production of bamboo only: This would typically cause the PPC to pivot inward on the axis representing bamboo, indicating that the economy can produce less bamboo than before but the production of coconuts remains unchanged.
d. A decrease in resources used in the production of coconuts only: This would typically cause the PPC to pivot inward on the axis representing coconuts, indicating that the economy can produce less coconuts than before but the production of bamboo remains unchanged.
To answer the question accurately, one would need to see Diagram 26.1c to determine the direction of the shift and the goods involved. If the PPC has shifted outward, it would suggest an increase in resources or technology (option a). If the PPC has shifted inward, it would suggest a decrease in resources or technology (option b). If the PPC has pivoted inward on one axis only, it would suggest a decrease in resources for the specific good on that axis (option c or d).

-The Shift in the Production Possibilities Curve Shown in Diagram