Consider Canada's production possibilities boundary.Suppose a scientific breakthrough leads to a lower-cost method of producing battery-operated cars in Canada.The likely effect would be to move Canada's current production
A)to a point beyond its new production possibilities boundary.
B)to a point inside its new production possibilities boundary.
C)possibilities boundary outward.
D)possibilities boundary inward.
E)above the level of U.S.production.

Question

Quizplus · Accepted Answer

A technological breakthrough leading to lower-cost methods of production generally lifts the production possibilities boundary outward, indicating an increase in production possibilities. Thus, Canada's current production possibilities boundary would likely shift outward, allowing for greater production of battery-operated cars within the country.

Consider Canada's Production Possibilities Boundary