Question

A production possibilities frontier can shift outward if… Group of answer choices The economy abandons inefficient production methods in favor of efficient production methods. Economy experiences economic downturn. There is a technological improvement. Resources are shifted from the production of one good to the production of the other good.

Answer 1

Answer:

There is a technological improvement

Explanation:

A production possibilities frontier shows the two combinations of good an economy can produce when all its resources are fully employed.

points on the production possibilities frontier show efficient production

Points inside the  production possibilities frontier show inefficient production

Points outside the production possibilities frontier show unattainable production given current resources.

Technological progress leads to a outward movement of the  production possibilities frontier

If Resources are shifted from the production of one good to the production of the other good, there would be a movement along the production possibilities frontier from one point to another