An outward shift of a production possibilities curve can be caused by a. planting a more profitable farm crop b. improving technology c. using idle resources d. changing consumer preferences e. increasing the minimum wage
An outward shift of a production possibilities curve can be caused by a. planting a more profitable farm crop b. improving technology c. using idle resources d. changing consumer preferences e. increasing the minimum wage
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section2.6: Sources Of Economic Growth
Problem 1YTE
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An outward shift of a production possibilities curve can be caused by
a. planting a more profitable farm crop
b. improving technology
c. using idle resources
d. changing consumer preferences
e. increasing the minimum wage
Expert Solution
Step 1
Answer:
PPF shifts outward when the overall production capacity of the economy increases. Production capacity can increase due to the increase in resources and due to improvement in the technology of production. Improved technology will increase the productivity of available resources and the economy can produce more of all the goods using the available resouces.
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