Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The country can produce more of both goods.
B
The opportunity cost of producing one good increases.
C
There is a reduction in available resources.
D
The country becomes less efficient in production.
Understanding the Answer
Let's break down why this is correct
Answer
When a country's Production Possibilities Curve (PPC) shifts outward, it means that the country can produce more goods and services than before. This shift usually happens due to improvements in technology, an increase in resources, or better education and skills among workers. For example, if a country discovers new oil reserves, it can produce more energy, leading to higher production of goods that rely on energy. As a result, the economy can grow, providing more jobs and potentially increasing the standard of living for its citizens. Overall, an outward shift in the PPC indicates a stronger and more capable economy.
Detailed Explanation
An outward shift means the country can make more of both goods. Other options are incorrect because Some might think that producing more of one good means it costs more of another; It's easy to think that if we can't produce as much, we have fewer resources.
Key Concepts
Production Possibilities Curve
Economic Growth
Resource Allocation
Topic
Production Possibilities Curve Shifts
Difficulty
easy level question
Cognitive Level
understand
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