Which of the following would be most likely to shift a country's production possibilities curve outward?
A)An improvement in the general level of literacy and education.
B)A sudden, substantial expansion of consumer wants.
C)A reduction in the country's labor force or population.
D)Shifting resources from investment to consumption goods production.

Question

Which of the following would be most likely to shift a country's production possibilities curve outward?
A)​An improvement in the general level of literacy and education.
B)​A sudden, substantial expansion of consumer wants.
C)​A reduction in the country's labor force or population.
D)​Shifting resources from investment to consumption goods production.

Quizplus · Accepted Answer

An improvement in the general level of literacy and education would lead to a more knowledgeable labor pool, which would enhance productivity and increase the efficiency of production. This would shift the production possibilities curve outward, allowing a country to produce more goods and services with the same resources.

Which of the Following Would Be Most Likely to Shift