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Production Possibilities Curve Shifts
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Arrange the following steps in the correct sequence to explain the outward shift of the Production Possibilities Curve (PPC): A. Technological advancements increase efficiency, B. The economy produces more of both goods, C. The Production Possibilities Curve shifts outward, D. Resources are utilized more effectively.

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A

Technological advancements increase efficiency → B. The economy produces more of both goods → C. The Production Possibilities Curve shifts outward → D. Resources are utilized more effectively

B

The economy produces more of both goods → B. Resources are utilized more effectively → C. Technological advancements increase efficiency → D. The Production Possibilities Curve shifts outward

C

Resources are utilized more effectively → B. Technological advancements increase efficiency → C. The Production Possibilities Curve shifts outward → D. The economy produces more of both goods

D

The Production Possibilities Curve shifts outward → B. The economy produces more of both goods → C. Resources are utilized more effectively → D. Technological advancements increase efficiency

Understanding the Answer

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Answer

To understand how the Production Possibilities Curve (PPC) shifts outward, we start with technological advancements that increase efficiency, which is step A. When new technologies are introduced, they allow resources to be used more effectively, leading to step D. As resources are utilized better, the economy can produce more of both goods, which is step B. This increase in production capabilities results in the PPC shifting outward, which is step C. For example, if a factory uses new machines that work faster, it can make more toys and games than before, demonstrating how technology can boost production.

Detailed Explanation

When technology improves, it helps us use resources better. Other options are incorrect because This option suggests we can produce more without first improving technology; This order implies we can use resources better before improving technology.

Key Concepts

Production Possibilities Curve (PPC) shifts
Economic growth
Resource allocation
Topic

Production Possibilities Curve Shifts

Difficulty

easy level question

Cognitive Level

understand

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