A production possibilities curve is plotted for a nation producing chairs and tables.Which of the following will cause a parallel shift in this curve?

Question

Quizplus · Accepted Answer

An increase in the availability of raw materials required for the production of both chairs and tables will cause a parallel shift in the curve, as it will allow for more production of both goods without affecting the productivity of workers or the prices of the goods. A and B describe changes that affect the productivity of workers in one specific area, while C describes a change in prices, which would cause a movement along the curve, not a shift.

A Production Possibilities Curve Is Plotted for a Nation Producing