Which of the following would allow the production possibilities curve for an economy to shift outward?
A) a better social organization of economic activity, such as conversion from socialism to capitalism
B) an increase in the labor force or resource base
C) more investment leading to better technology and more innovation
D) all of the above

Question

Quizplus · Accepted Answer

All of the above choices would allow the production possibilities curve for an economy to shift outward. An increase in the labor force or resource base would lead to an increase in the amount of goods and services that can be produced. More investment leading to better technology and more innovation would increase efficiency and productivity, which would also lead to an increase in the amount of goods and services that can be produced. A better social organization of economic activity, such as conversion from socialism to capitalism, could increase incentives for individuals to engage in economic activity, which could also lead to an increase in the amount of goods and services that can be produced.

Which of the Following Would Allow the Production Possibilities Curve