In a certain economy,brooms and radios are produced,and the economy currently operates on its production possibilities frontier.Which of the following events would allow the economy to produce more brooms and more radios,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 brooms and more radios, 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 broom industry would allow the economy to produce more brooms with the same amount of resources, freeing up resources to produce more radios. A technological advance in the radio industry would have a similar effect, allowing the economy to produce more radios with the same amount of resources, freeing up resources to produce more brooms.

In a Certain Economy,brooms and Radios Are Produced,and the Economy