Which of the following events create an outward shift of the production possibilities curve?
A)The United States moves resources from the production of goods for domestic production to the production of goods for export.
B)Tax reductions reduce the cost and increase the amount of investment in factories, machinery, and research and development.
C)There is an migration of young people to another country where there is more political freedom.
D)The unemployment rate falls from 33 percent to 12 percent.

Question

Quizplus · Accepted Answer

Tax reductions will reduce the cost and increase the amount of investment in factories, machinery, and research and development, which will increase productivity and shift the production possibilities curve outward. A, C, and D do not necessarily shift the production possibilities curve outward, as they do not directly increase productivity or the ability to produce more goods and services.

Which of the Following Events Create an Outward Shift of the Production