Exhibit 3-11 Refer to Exhibit 3-11.Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift from AA to BB?

Question

Exhibit 3-11  Refer to Exhibit 3-11.Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift from AA to BB?

Quizplus · Accepted Answer

Additions to the stock of capital, such as new fishing equipment or improved breadfruit harvesting tools, would increase the productivity of the factors of production and shift the production possibilities curve outward from AA to BB. A reduction in the size of the available labor force, choice to produce more fish and less breadfruit, or choice to produce more breadfruit and fewer fish would result in a movement along the same production possibilities curve AA.