-The figure above shows how the PPF for cell phones and new cell-phone factories can expand.In the figure,if the economy chose the point on this year's PPF that is above point K,the next year's PPF would
A) shift outward along the horizontal axis farther than the new PPF shown in the figure.
B) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure.
C) shift outward along the vertical axis, not along the horizontal axis.
D) shift inward along the horizontal axis.
E) shift inward along the vertical axis.

Question

-The figure above shows how the PPF for cell phones and new cell-phone factories can expand.In the figure,if the economy chose the point on this year's PPF that is above point K,the next year's PPF would
A) shift outward along the horizontal axis farther than the new PPF shown in the figure. 
B) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure. 
C) shift outward along the vertical axis, not along the horizontal axis. 
D) shift inward along the horizontal axis. 
E) shift inward along the vertical axis.

Quizplus · Accepted Answer

Choosing a point above point K implies producing more cell-phone factories, which increases future production capacity, leading to a greater outward shift along the horizontal axis.

-The Figure Above Shows How the PPF for Cell Phones