Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is likely to cause an outward shift of a production possibility curve?

Question

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Which of the following is likely to cause an outward shift of a production possibility curve?​

Quizplus · Accepted Answer

An improvement in available technology will increase the productivity of resources, leading to more efficient production and an increased output of goods and services. This will cause an outward shift of the production possibility curve, indicating an increase in the economy's productive capacity. The other options presented do not necessarily cause an outward shift of the production possibility curve.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth