Which of the following factors will cause the production possibilities curve to shift away from the origin?
A) Enforcement of compulsory retirement at age 60,for all workers.
B) The termination of all work on Albertan oil sands projects.
C) A doubling of all university fees.
D) New,improved technology.
E) Increased interest rates,which cause a decrease in expenditure on capital investment.

Question

Quizplus · Accepted Answer

New, improved technology will allow for more efficient production and will shift the production possibilities curve outward.

NOTE: None of the other options listed will cause the production possibilities curve to shift away from the origin. They may cause changes in the economy, but they will not change the total amount of goods and services that can be produced.

Which of the Following Factors Will Cause the Production Possibilities