Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Suppose Country B's population of workers increased to 600.Which of the following statements is now true?
A)Country B's production possibilities curve has rotated out from the x-axis.
B)Country B's production possibilities curve has shifted straight out.
C)Country B's production possibilities curve has shifted straight in.
D)Country B's production possibilities are now more limited because of crowding.

Question

Quizplus · Accepted Answer

With an increase in the number of workers, Country B's production possibilities have expanded, allowing it to produce more of both iPods and tablets. This is shown by a straight outward shift of the production possibilities curve.

Suppose That a Worker in Country a Can Make Either