Referring to a production possibilities curve and the goods being compared,depict the economic event.Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs.consumer goods).
A)A movement from a point inside the curve to a point on or near the curve
B)A movement from a point on or near the curve to a point inside the curve
C)A shift in the entire curve to the right (outward)
D)A shift in the entire curve to the left (inward)
E)A movement along the curve

Question

Quizplus · Accepted Answer

The introduction of computerization as a capital good allowed for increased efficiency and productivity in many industries, leading to the creation of thousands of new businesses. This represents an increase in the economy's overall production capacity, resulting in a shift in the entire production possibilities curve to the right (outward).

Referring to a Production Possibilities Curve and the Goods Being