📚 Learning Guide
Production Possibilities Curve Shifts
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Which of the following scenarios would likely cause a rightward shift in the Production Possibilities Curve, indicating economic growth?

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Choose the Best Answer

A

An increase in available resources

B

A decrease in unemployment

C

A technological advancement

D

All of the above

Understanding the Answer

Let's break down why this is correct

Answer

A rightward shift in the Production Possibilities Curve (PPC) shows that an economy can produce more goods and services than before, indicating economic growth. This shift can happen for several reasons, such as an increase in resources, improvements in technology, or better education for workers. For example, if a country discovers new oil reserves, it can produce more energy, which boosts other industries like transportation and manufacturing. Additionally, if new technology is developed that allows farmers to grow crops more efficiently, the overall production of food increases. These changes expand the economy's capacity, moving the PPC outward and indicating growth.

Detailed Explanation

All of these options can lead to economic growth. Other options are incorrect because Some might think that just having more resources is enough; People may believe that lowering unemployment alone is enough for growth.

Key Concepts

economic efficiency
economic growth
Topic

Production Possibilities Curve Shifts

Difficulty

medium level question

Cognitive Level

understand

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