-The above figure shows the PPF for a country that produces computers and computer factories.Which of the following would most likely shift the PPF from PPF₀ in one year to PPF₁ in the next?
A) Nothing, because the PPF does not shift.
B) Increase the production of computers from 9 million (at point
C) to 11 million (at point
B).
C) Decrease the production of computers from 11 million (at point
B) to 9 million (at point
C) and build 9 new computer factories.
D) Increase consumption of both computers and computer factories.
E) Decrease production of both computers and computer factories by moving into the interior of the PPF.

Question

-The above figure shows the PPF for a country that produces computers and computer factories.Which of the following would most likely shift the PPF from PPF₀ in one year to PPF₁ in the next?
A) Nothing, because the PPF does not shift. 
B) Increase the production of computers from 9 million (at point 
C) to 11 million (at point 
B). 
C) Decrease the production of computers from 11 million (at point 
B) to 9 million (at point 
C) and build 9 new computer factories. 
D) Increase consumption of both computers and computer factories. 
E) Decrease production of both computers and computer factories by moving into the interior of the PPF.

Quizplus · Accepted Answer

The PPF (Production Possibility Frontier) shifts outward when the capacity to produce goods and services increases. In this case, decreasing the production of computers to build more computer factories (option C) increases the country's future production capacity, thus shifting the PPF outward from PPF₀ to PPF₁.

-The Above Figure Shows the PPF for a Country That