Question

The production possibilities frontier will shift outward Part 8 A. if resources are not used in production. B. . C. if resources are used to produce consumption goods. D. . E. if production occurs outside the production possibilities frontier.

Answer 1

The production possibilities frontier will shift outward if resources are used to produce capital goods.

What makes the production possibilities curve to shift outward?

The Outward or inward shifts in the PPF is known to be influenced by a lot of changes in the full amount of the needed production factors. It can also be due to advancements in technology.

When the total amount of production factors like labor or capital is known to go up, then the economy is said to be able to make more goods at any point.

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