Figure 2-2
Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
A) a decrease in the labor force of the country
B) a sudden change in consumer preferences for more fish and less breadfruit
C) a major technological advance
D) a decrease in the capital stock

Question

Figure 2-2 
Which of the following would most likely cause the production possibilities curve for breadfruit and fish to shift outward from AA to BB in Figure 2-2?
A) a decrease in the labor force of the country 
B) a sudden change in consumer preferences for more fish and less breadfruit 
C) a major technological advance 
D) a decrease in the capital stock

Quizplus · Accepted Answer

A major technological advance would increase the productivity of producing both breadfruit and fish, allowing for the production possibilities curve to shift outward from AA to BB. A decrease in the labor force (choice A) or capital stock (choice D) would decrease productivity, shifting the curve inward. A sudden change in consumer preferences (choice B) would not affect the production capabilities of the country, but would influence the allocation of resources within the given production possibilities curve.

Figure 2-2 Which of the Following Would Most Likely Cause the Production