Ceteris paribus which of the following is likely to cause an outward shift of the production possibilities curve?
A) Investment in telecommunications networks.
B) The deportation of illegal immigrants.
C) An increase in the unemployment rate.
D) A tax increase on factors of production.

Question

Quizplus · Accepted Answer

Investment in telecommunications networks would increase the economy's level of productivity and efficiency, allowing for a greater quantity and quality of goods and services to be produced with the same amount of resources. This would lead to an outward shift in the production possibilities curve.

Ceteris Paribus Which of the Following Is Likely to Cause