Question

The production possibilities curve may shift outward as a result of a(n)

Answer 1

Statements A, B, C, and E will all cause shift of production possibilities curve outwards. This is because:

Statement A: Training of workers will mean improved skills and knowledge. This will in turn lead to increased productivity and may lead to efficiency and thus increased production.

Statement B: Decrease in cost of production will lead to production of more goods and thus the curve will shift outwards.

Statement C: Increase in short-run aggregate supply may mean supply of more raw materials to the production thus increased productivity.

Statement D: Increase in customer spending will mean increased demand and thus leads to shifting in supply. This leads to increased production.<span />