An improvement in a country's legal system that enhanced the ability of citizens to protect their property rights and enforce contracts would result in which of the following changes to the country's production possibilities curve?
A) a movement from a point on the curve to a point outside the curve
B) a movement from one point to another point along the curve
C) an outward shift of the curve
D) a movement from a point on the curve to a point inside the curve

Question

Quizplus · Accepted Answer

An improvement in the legal system that enhances property rights and contract enforcement would likely lead to increased investment and efficiency, thus expanding the economy's productive capacity and shifting the production possibilities curve outward.

An Improvement in a Country's Legal System That Enhanced the Ability