To produce a combination of goods and services beyond the current production possibilities curve,an economy must:

Question

Quizplus · Accepted Answer

To produce a combination of goods and services beyond the current production possibilities curve, the economy must either find more resources or develop new technology to increase production efficiency. Using more of the available resources and technology would only allow the economy to produce at its current maximum potential, while raising the prices of goods and services would lead to inflation and potentially decreased production if consumer demand falls. Population growth may increase the demand for goods and services, but it does not necessarily guarantee an increase in production capacity. Only finding new resources or technology can shift the production possibilities curve outward.

To Produce a Combination of Goods and Services Beyond the Current