A nation can increase its production possibilities by:
A) Shifting resources to produce more consumer goods and less investment goods
B) Shifting resources from private goods to public goods
C) Improving labor productivity
D) Eliminating unemployment

Question

Quizplus · Accepted Answer

Improving labor productivity can lead to an increase in the production possibilities of a nation since workers can produce more output in the same amount of time, allowing for more goods and services to be produced. Shifting resources between different types of goods can also lead to a change in production possibilities, but this choice does not specify which type of goods should be shifted. Eliminating unemployment can also increase production possibilities, but it may not be feasible in all situations. Shifting resources from private goods to public goods may improve overall societal welfare but may not necessarily increase production possibilities.

A Nation Can Increase Its Production Possibilities By