Which of the following would most likely cause a country's production possibilities set to shift outward at every point along the frontier?
A) a decrease in idle capital
B) a decrease in unemployment
C) a technological advance in only one sector of the economy
D) a general technological advance that affects all sectors of the economy
E) none of the above

Question

Quizplus · Accepted Answer

A general technological advance that affects all sectors of the economy would be the most likely cause for a country's production possibilities set to shift outward at every point along the frontier. This would increase the country's productivity and efficiency across all sectors, leading to an increase in the production of all possible goods and services. Decreases in idle capital or unemployment and technological advances in only one sector of the economy would not necessarily result in an outward shift in the production possibilities set at every point along the frontier.

Which of the Following Would Most Likely Cause a Country's