Consider a production possibilities frontier with corn production measured on the vertical axis and car production measured on the horizontal axis.Unusually good weather for growing corn shifts
A)the horizontal intercept of the PPF rightward and the vertical intercept of the PPF upward.
B)the horizontal intercept of the PPF rightward but does not shift the vertical intercept of the PPF.
C)the vertical intercept of the PPF upward but does not shift the horizontal intercept of the PPF.
D)neither the horizontal intercept nor the vertical intercept of the PPF.
E)the vertical intercept of the PPF downward and the horizontal intercept of the PPF leftward.

Question

Quizplus · Accepted Answer

Unusually good weather for growing corn would increase the potential maximum output of corn production, leading to a vertical shift upwards of the PPF. However, car production is not affected by the weather for growing corn, so the horizontal intercept of the PPF would remain the same. Therefore, the correct option is C.

Consider a Production Possibilities Frontier with Corn Production Measured on the Vertical