Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?
A)A general technological advance that affects all sectors of the economy
B)A decrease in idle capital
C)A decrease in unemployment
D)A technological advance in only one sector of the economy
E)None of the above

Question

Quizplus · Accepted Answer

A general technological advance that affects all sectors of the economy would increase the productivity of all factors of production and shift the production possibilities set outward at every point. The other options may increase production at specific points along the frontier, but they would not shift the entire frontier outward.

Which of the Following Would Most Likely Cause a Country's