In March a factory used new technology to produce its output. Then in August a fire destroyed half the factory. The new technology shifted the factory's PPF _______ and the fire shifted it _______.
A) outward; inward
B) inward; outward
C) outward; outward
D) inward; inward

Question

Quizplus · Accepted Answer

The new technology improved production capabilities, shifting the Production Possibility Frontier (PPF) outward. The fire damaged the factory, reducing its production capabilities, thus shifting the PPF inward.

In March a Factory Used New Technology to Produce Its