Suppose you are taking two courses. Your scarce resource is study time, which you divide between the two courses to produce "gra
des" in each. What would cause an outward shift in the production function (study time is fixed) so that you can achieve a higher grade in economics without reducing the grade in the other course?
An outward shift in production possibility when resources are fixed is caused by improvement in technology which increases productivity.
Explanation:
A production possibility curve shows the different combination of two goods that can be produced using the fixed resources. Here, the two goods are grades in two courses and the fixed resource is study time.
The outward shift in PPF shows an increase in output level. Output level may increase because of several reasons.
Increase in resources
Improvement in technology
Improvement in human capital
Here, the resources i.e study time is assumed to be fixed. So, the increase in output level can be because of improvement in technology or in human capital which further helps in increasing productivity.
The correct answer is retrospective voting. This is a voting
wherein it is made after having to consider factors that is associated to the
officeholder, administration, or the political party by which it presume that
the people is concerned about the outcomes that instruments.