Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6
-Refer to Figure 2.6. An increase in the economy's capital stock is represented by a

Question

Refer to the information provided in Figure 2.6 below to answer the questions that follow.  Figure 2.6
-Refer to Figure 2.6. An increase in the economy's capital stock is represented by a

Quizplus · Accepted Answer

An increase in the economy's capital stock would shift the production possibility frontier (PPF) outward, meaning the economy can produce more of both goods. This shift is represented by a movement from ppf¹ to ppf², as the economy can now produce more of both goods without sacrificing the production of the other. Therefore, the correct choice is B.

Refer to the Information Provided in Figure 2