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

Question

Quizplus · Accepted Answer

Economic growth would shift the production possibilities frontier outward, enabling the economy to produce more of both peanuts and books. Choices A and B might allow for increased production of one or both goods, but not necessarily an increase in both goods together.

In a Certain Economy,peanuts and Books Are Produced,and the Economy