A production possibilities curve is plotted for a nation producing cotton and jute.Which of the following will cause a parallel rightward shift of the production possibilities curve?

Question

Quizplus · Accepted Answer

A parallel rightward shift of the production possibilities curve indicates an increase in the capacity to produce both goods, which is only achieved in option C, where the invention of a new fertilizer increases the production of both cotton and jute by 10 percent. Options A and B only increase the production of one good, not affecting the overall capacity to produce both goods simultaneously, and option D affects prices, not production capacity.

A Production Possibilities Curve Is Plotted for a Nation Producing