Which of the following is a possible explanation for the shift of the production possibilities curve illustrated?

Question

Quizplus · Accepted Answer

A technological advance that affects both pizza and bicycle production could lead to an increase in the overall productivity of the economy, allowing for the production possibilities curve to shift outward. This would enable more pizzas and bicycles to be produced than before using the same level of resources. Option A is incorrect because an increase in the number of idle factories would suggest a decrease in production capacity, not an increase. Option B is incorrect because a technological advance affecting only bicycle production would not affect the production of pizza and would therefore not cause a shift in the production possibilities curve. Option D is incorrect because a decrease in the quantity of labor available would limit the production capacity of both pizzas and bicycles and lead to an inward shift of the production possibilities curve.

Which of the Following Is a Possible Explanation for the Shift