Question

A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the production of the other good. b. the economy abandons inefficient production methods in favor of efficient production methods. c. government increases the amount of money in the economy. d. there is a technological improvement.

Answer 1

Answer:

d. there is a technological improvement.

Explanation:

a) replacing production of one good in favor of another will be a move across the PPF

b) abandon inefficient production will bring the production to the PPF from a place below it.

c) has no relationship it will simply put inflationary pressure.

d) the technological improvement will make a better use of the factor thus, increasing productivity and making possible more production with the same amount of materials.