1. Improvements in technology. 2. Increases in the supply (stock) of capital goods.
3) Purchases of expanding output.
4) Obtaining the optimal combination of goods, each at least-cost production.
5) Increases in the quantity and quality of natural resources.
6) Increases in the quantity and quality of human resources.
Which set of items in the accompanying list would shift an economy's production possibilities curve
Outward?
A) 2, 5, and 6 only
B) 2, 4, 5, and 6 only
C) 1, 2, 5, and 6 only
D) 1, 3, and 4 only

Question

Quizplus · Accepted Answer

Factors that can shift an economy's production possibilities curve outward include improvements in technology (1), increases in the supply of capital goods (2), and increases in the quantity and quality of natural resources (5) and human resources (6). These factors enhance an economy's capacity to produce goods and services.

1 Improvements in Technology