Dynamic gains in both the stock of a country's resources and the efficiency with which resources are utilized will cause a country's PPF to:

Question

Quizplus · Accepted Answer

When a country experiences dynamic gains in both the stock of its resources (through investments in capital goods) and the efficiency with which resources are utilized (through technological advancements), its PPF will shift outward. This is because the country is now capable of producing more goods and services with the same amount of resources or producing the same amount of goods and services with fewer resources. Therefore, the PPF curve will shift outward, indicating an increase in potential output.

Dynamic Gains in Both the Stock of a Country's Resources