Final answer:
Greater entrepreneurship leads to an outward shift of the production possibilities curve, reflecting economic growth and the potential for a society to consume more of all goods due to improved efficiency, increased resources, and advancements in technology.
Step-by-step explanation:
Greater entrepreneurship in a society typically leads to an outward shift in the production possibilities curve (PPC or PPF). When entrepreneurs innovate or find more efficient methods to utilize resources, they contribute to economic growth. This can be understood better under two circumstances: (1) improving efficiency in resource utilization pushes an economy to produce on its production possibilities frontier (PPF) and have more of all goods, and (2) as resources like labor and capital grow over time, the economy expands, and the PPF shifts outward, allowing the consumption of more goods. Additionally, advancements in technology can enhance production given the existing resources, which also pushes the PPF outward. Therefore, greater entrepreneurship acts as a catalyst for economic growth, allowing a society to potentially consume more of all goods.
On a production possibilities curve diagram, greater entrepreneurship keeps the economy on the curve. Entrepreneurship refers to the ability to take risks and innovate, which can lead to more efficient production and economic growth. When entrepreneurs introduce new ideas, technologies, and products, it can help the economy utilize its resources more effectively, staying on the production possibilities curve or even shifting it outward.