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28 votes
1 Which does not shift the production possibility curve outwards?

A higher prices
B higher productivity levels
C improved education and healthcare
D technological advances

User Roohollah Etemadi
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1 Answer

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13 votes

Answer: A

Step-by-step explanation:

The Production Possibilities Curve is a curve to show a country/nation's capability to produce something at their current state. Shifting the PPC outwards means there is some kind of an advancement to the countries' resources, technology, etc. Which increases their capacity, making it possible to reach what was initially unobtainable due to scarcity. Higher prices are usually discussed with demand/supply curves, but even then it does not change the curves since it only increases the quantity supplied or demanded (Ceteris Paribus). Even if something is set at higher prices, that only affects the businesses that go with it. The entire capability of the nation would still stay the same. Is this from AP Macroeconomics?

User Kluu
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