Use the following figure to answer questions: Figure 1.3
-In Figure 1.3,a shift of the production possibilities curve from PP1 to PP2 could be caused by
A)A decrease in the quantity of raw materials available.
B)A decline in the production skills of workers.
C)The use of improved production technology.
D)All of the choices are correct.

Question

Use the following figure to answer questions: Figure 1.3 
-In Figure 1.3,a shift of the production possibilities curve from PP1 to PP2 could be caused by
A)A decrease in the quantity of raw materials available. 
B)A decline in the production skills of workers. 
C)The use of improved production technology. 
D)All of the choices are correct.

Quizplus · Accepted Answer

The shift from PP1 to PP2 indicates an increase in the economy's potential production possibilities, which can be caused by the adoption of improved production technology. A decrease in the quantity of raw materials or a decline in the production skills of workers would result in a shift inward of the curve, indicating a decrease in potential production possibilities. Therefore, options A and B can be ruled out. Option D is incorrect because not all the choices are correct.

Use the Following Figure to Answer Questions: Figure 1