Question

which of the following causes a production possibilities frontier to shift to the right?

A. The economy grows.
B. The economy shrinks.
C. The economy stagnates.
D. The economy destabilizes.

Answer 1

c. the economy stagnates

Answer 2

When an economy grows, it causes a production possibilities frontier to shift to the right

• A production possibilities curve to shift to the right as a result of growth in the economy of a nation. Due to scarcity of resources, there can be consequences, But when an economy grows and all the rest things becomes constant, causing us to produce more, so this will result to a shift in the production possibilities curve outward, or to the right.

From the above we can therefore say that the answer When an economy grows, it causes a production possibilities frontier to shift to the right is correct

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