Which of the following will not shift the production possibilities curve outward?
A)an improvement in technology, which increases the efficiency of inputs
B)the discovery of significant oil reserves in Alaska
C)a decrease in capacity utilization of existing factories
D)additions to the stock of physical capital

Question

Which of the following will not shift the production possibilities curve outward?
A)​an improvement in technology, which increases the efficiency of inputs
B)​the discovery of significant oil reserves in Alaska
C)​a decrease in capacity utilization of existing factories
D)​additions to the stock of physical capital

Quizplus · Accepted Answer

A decrease in capacity utilization of existing factories will not shift the production possibilities curve outward because it reflects a decrease in the efficiency of inputs or resources rather than an increase in resources, technology, or capital. The other options listed would increase the production possibilities curve.

Which of the Following Will Not Shift the Production Possibilities