In order to shift the current production possibilities curve outward,an economy
A)Must use more of the existing resources.
B)Can raise the prices of goods and services to encourage firms to produce more.
C)Must find additional resources or better technology.
D)Will never be able to produce a combination of goods and services outside the current production possibilities curve.

Question

Quizplus · Accepted Answer

In order to shift the production possibilities curve outward, an economy must find additional resources or better technology. This can involve discovering new natural resources or improving technological processes to increase efficiency and productivity. Using existing resources more efficiently (choice A) and raising prices (choice B) may lead to a temporary increase in production, but it will not lead to a shift in the entire production possibilities curve. Choice D is incorrect because the purpose of shifting the production possibilities curve outward is to enable an economy to produce a combination of goods and services that it previously could not.

In Order to Shift the Current Production Possibilities Curve Outward,an