Figure 2-5
-Refer to Figure 2-5. What most likely caused the shift of the production possibilities frontier from A to B?
A) technological improvement in the production of batteries
B) more labour available in the economy
C) a general technological breakthrough
D) more capital available in the economy

Question

Figure 2-5 
-Refer to Figure 2-5. What most likely caused the shift of the production possibilities frontier from A to B?
A) technological improvement in the production of batteries 
B) more labour available in the economy 
C) a general technological breakthrough 
D) more capital available in the economy

Quizplus · Accepted Answer

The shift from A to B indicates an increase in the economy's production capacity, which could be caused by a technological improvement in the production of batteries. This would allow for more efficient battery production, freeing up resources to produce other goods and services, resulting in an outward shift of the production possibilities frontier.

Figure 2-5 -Refer to Figure 2-5. What Most Likely Caused the Shift