Question

An outward shift of a nation's production possibilities curve: a. does not ensure the nation of an increase in real GDP. b. ensures the nation of an increase in real GDP per capita. c. ensures a nation of an increase in real GDP. d. ensures the nation of an increase in the rate of inflation.

Answer 1

Answer:

Ensures the nation of an increase in real GDP per capita ( B )

Explanation:

The outward shift of a nation's production possibilities curve ensures that nation of an increase in real GDP per capita.

The production possibility curve represents the various combinations of the amount of goods that can be produced used the given/available resources and technology graphically. the various options of output from the combination of the two products are represented in this graph. the more outward the shift in the graph the increase in the real GDP per capita of the economy.

Answer 2

Answer:

B) Ensures the nation of an increase in realGDP per capita.

Explanation:

The Production Possibility Curve displays all the possible combinations of how an economy can produce two goods with constraints especially when the resources are scarce. What might be the reason of a shift in a Production Possibility Curve? For any Production Possibility Curve is shift outward, the economy will have to produce increasing amounts of goods and services that consumer's demand. When resources are scarce, we have constraints which the curve tends to show us. When the economy grows and other things remain constant, we produce note and this causes a shift outwards or towards the right in a Production Possibility Curve. Shifts in a Production Possibility Curve are caused by advancement in technology, change in resources, change in labour force, e.t.c. When more goods are produced by an economy, it means an increase in the country's GDP per capita.