Referring to a production possibilities curve and the goods being compared,depict the economic event.The literacy rate increases among workers (capital goods vs.consumer goods) .

A) A movement from a point inside the curve to a point on or near the curve
B) A movement from a point on or near the curve to a point inside the curve
C) A shift in the entire curve to the right (outward)
D) A shift in the entire curve to the left (inward)
E) A movement along the curve

Question

Ayanna Lynch · Accepted Answer

Final Answer : C, Explanation :  An increase in the literacy rate among workers enhances their productivity, which can lead to an increase in the production of both capital and consumer goods. This is represented by an outward shift of the entire production possibilities curve, indicating that the economy can now produce more of both types of goods than before.

Definitions

Learning Objectives

Learning Objectives

Related questions