The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars.Figure 2.1

-Which of the following will result in an outward shift of the production possibilities curve [PPC]?

Question

The figure given below represents the production possibilities curves [PPC] of a country producing wine and cars.Figure 2.1
 
-Which of the following will result in an outward shift of the production possibilities curve [PPC]?

Quizplus · Accepted Answer

An improvement in the quality of resources, such as better technology or more skilled workers, will increase the productivity of the available resources and allow the country to produce more wine and cars, resulting in an outward shift of the PPC. The other options will either decrease the amount of available resources or decrease their productivity, leading to an inward shift of the PPC.

The Figure Given Below Represents the Production Possibilities Curves [PPC]