In order for a production possibilities curve to shift to the right, which of the following must occur?
A) government involvement
B) increasing consumer wants
C) economic growth
D) reductions in the supply of resources

Question

Quizplus · Accepted Answer

Economic growth would increase the available resources and the efficiency of production, allowing the production possibilities curve to shift to the right. Government involvement may or may not lead to a shift depending on the type of involvement. Increasing consumer wants would not necessarily lead to a shift, as the production possibilities curve shows the maximum possible production levels given existing resources and technology. Reductions in the supply of resources would cause the curve to shift to the left, not the right.

In Order for a Production Possibilities Curve to Shift to the Right