Which of the following is a possible explanation for the shift of the production possibilities curve illustrated?
A)an increase in the number of idle factories
B)a technological advance that affects only bicycle production
C)a technological advance that affects both pizza and bicycle production
D)a decrease in the quantity of labor available due to emigration

Question

Which of the following is a possible explanation for the shift of the production possibilities curve illustrated?
A)​an increase in the number of idle factories
B)​a technological advance that affects only bicycle production
C)​a technological advance that affects both pizza and bicycle production
D)​a decrease in the quantity of labor available due to emigration

Quizplus · Accepted Answer

A technological advance that affects both pizza and bicycle production can lead to an increase in productivity and efficiency in both industries, causing the production possibilities curve to shift outward. Option A is incorrect because an increase in the number of idle factories would lead to a decrease in production, causing the production possibilities curve to shift inward. Option B is incorrect because a technological advance that affects only bicycle production would only impact the production possibilities curve for bicycles, not the entire curve. Option D is incorrect because a decrease in the quantity of labor available would lead to a decrease in production, causing the production possibilities curve to shift inward.

Which of the Following Is a Possible Explanation for the Shift