Asked by
Denijah Johnson
on Dec 08, 2024
Verified
Refer to Figure 2.6. Which of the following will shift an economy's production possibility frontier from ppf1 to ppf2?
A) a decrease in unemployment
B) an increase in production efficiency
C) a change in consumers' tastes
D) an increase in the economy's capital stock
Production Efficiency
A state in which goods and services are produced at the lowest possible cost while not wasting any resources.
Unemployment
The situation of being without a job while actively looking for employment.
Capital Stock
The total amount of physical and financial assets owned by a business or country.
- Understand the importance of changes in the Production Possibility Frontier and their association with technological progress, expansion of capital stock, and variations in the economic climate.
Verified Answer
HS
Learning Objectives
- Understand the importance of changes in the Production Possibility Frontier and their association with technological progress, expansion of capital stock, and variations in the economic climate.