The figure given below represents the production possibilities curve for goods and services in an economy.Figure 2.3

-Which of the following actions is most likely to cause a rightward shift in a production possibilities curve [PPC]?

Question

The figure given below represents the production possibilities curve for goods and services in an economy.Figure 2.3
 
-Which of the following actions is most likely to cause a rightward shift in a production possibilities curve [PPC]?

Quizplus · Accepted Answer

Increasing the technological know-how used in production will increase the productivity of resources and enable the economy to produce more goods and services with the same amount of resources, causing a rightward shift in the PPC. The other options (A, B, C, D) either involve a reallocation or reduction of resources, which would cause the PPC to shift leftward or remain unchanged.

The Figure Given Below Represents the Production Possibilities Curve for Goods