The production possibilities curve shifts outward in response to:
A) A decline in technology or more resources or both.
B) A decline in technology or fewer resources or both.
C) Improved technology or more resources or both.
D) Improved technology or fewer resources or both.

Question

Quizplus · Accepted Answer

An outward shift in the production possibilities curve indicates an increase in the economy's potential to produce goods and services. This can be achieved through improved technology, which can increase the efficiency with which resources are utilized, or through an increase in available resources, such as through an increase in population or new discoveries of natural resources. Therefore, the correct answer is improved technology or more resources or both, which is option C.

The Production Possibilities Curve Shifts Outward in Response To