Use the following to answer questions :
Figure1-3
-As country A's economy grows, what will happen to the PPF in Figure 1-3?
A)The PPF will be stationary.
B)The PPF will shift inward.
C)The PPF will shift outward.
D)The PPF will shift outward then back in, until it is back at its original position.
E)None of the above.

Question

Use the following to answer questions :
Figure1-3 
-As country A's economy grows, what will happen to the PPF in Figure 1-3?
A)The PPF will be stationary. 
B)The PPF will shift inward. 
C)The PPF will shift outward. 
D)The PPF will shift outward then back in, until it is back at its original position. 
E)None of the above.

Quizplus · Accepted Answer

As country A's economy grows, it will be able to produce more goods and services due to improved technology, increased labor force, and additional resources. This will cause the PPF to shift outward, indicating an increase in potential production possibilities.

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