An outward shift of a production possibilities curve can be caused by a. planting a more profitable farm crop b. improving technology c. using idle resources d. changing consumer preferences e. increasing the minimum wage

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
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Chapter10: Financing And Producing Goods
Section: Chapter Questions
Problem 6AA
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An outward shift of a production possibilities curve can be caused by

a. planting a more profitable farm crop
b. improving technology
c. using idle resources
d. changing consumer preferences
e. increasing the minimum wage
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Answer:

PPF shifts outward when the overall production capacity of the economy increases. Production capacity can increase due to the increase in resources and due to improvement in the technology of production. Improved technology will increase the productivity of available resources and the economy can produce more of all the goods using the available resouces.

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