In a certain economy,toys and greeting cards are produced,and the economy currently operates on its production possibilities frontier.Which of the following events would allow the economy to produce more toys and more greeting cards,relative to the quantities of those goods that are being produced now?

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Quizplus · Accepted Answer

All of the events listed would allow the economy to produce more toys and more greeting cards, relative to the quantities of those goods that are being produced now. Economic growth would increase the economy's productive capacity, allowing it to produce more of both goods. A technological advance in the toy industry would allow the economy to produce more toys with the same amount of resources, freeing up resources that could be used to produce more greeting cards. A technological advance in the greeting card industry would have a similar effect, allowing the economy to produce more greeting cards with the same amount of resources, freeing up resources that could be used to produce more toys.

In a Certain Economy,toys and Greeting Cards Are Produced,and the Economy