Which of the following will shift a production possibilities curve outward?
A)an increase in the unemployment rate
B)a decrease in the unemployment rate from 18% to 15%
C)an improvement in technology
D)a decrease in available labor and capital

Question

Which of the following will shift a production possibilities curve outward?​
A)​an increase in the unemployment rate
B)​a decrease in the unemployment rate from 18% to 15%
C)​an improvement in technology
D)​a decrease in available labor and capital

Quizplus · Accepted Answer

An improvement in technology would allow for more efficient production processes and would therefore shift the production possibilities curve outward. Choices A, B, and D would not directly impact the production possibilities curve.

Which of the Following Will Shift a Production Possibilities Curve