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Which of the following will result in an outward shift of the production possibilities curve?

A.
An improvement in technology that benefits one sector of the economy.

B.
A shift from unemployment to full employment.

C.
A change in the needs and wants of the society.

D.
An increase in the total amount of resources available.

User Arno
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Final answer:

A. An improvement in technology that benefits one sector of the economy and D. an increase in the total amount of resources available will both result in an outward shift of the production possibilities curve.

Step-by-step explanation:

To determine which option will result in an outward shift of the production possibilities curve (PPC), we must understand what causes such a shift.

The PPC represents the maximum combination of goods that can be produced by an economy with the available resources and technology.

An outward shift in the PPC indicates that the economy can produce more goods than before due to an increase in resources or an improvement in technology.

An improvement in technology that benefits one sector of the economy (Option A) will indeed result in an outward shift of the PPC.

This improvement means that more goods can be produced with the same amount of resources, which is one of the primary ways to shift the PPC outward.

A shift from unemployment to full employment (Option B) would simply mean that the economy moves closer to its current PPC, not that the PPC itself shifts outward.

This is because the existing resources are being used more efficiently.

A change in the needs and wants of society (Option C) does not directly affect the PPC.

Instead, it might change the composition of goods produced within the existing PPC.

An increase in the total amount of resources available (Option D) also leads to an outward shift of the PPC, as more resources mean more production capacity.

Therefore, both Option A, an improvement in technology, and Option D, an increase in resources, would result in an outward shift of the PPC.

User Omdel
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