An outward shift of an economy's production possibilities curve is caused by which of the...
Question:
An outward shift of an economy's production possibilities curve is caused by which of the following?
a. entrepreneurship
b. an increase in labor
c. an advance in technology
d. all of the above
Production Possibility Curve:
The term Production Possibility Curve or PPC depicts the different combination of two services/products that a country can produce by optimally utilizing its scarce resources and technology level.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer- The correct option is d. All of the above.
A rightward or outward shift in the PPC of any nation depicts a rise in the production of both the products...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:

from
Chapter 1 / Lesson 5Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.
Related to this Question
- An outward shift of an economy's production possibilities curve is caused by: a. entrepreneurship b. an increase in labor c. an advance in technology d. all of the above
- Shifting the production possibilities curve An outward shift of an economy's production possibilities curve is caused by a. entrepreneurship. b. an increase in labor. c. an advance in technology. d. all of the above.
- An outward shift of an economy's production possibilities curve is caused by an: a. increase in capital. b. increase in labor. c. advance in technology. d. All of the answers are correct.
- Improvements in technology will shift an economy's production possibilities curve a. inward, then outward. b. outward, then inward. c. outward. d. inward.
- Key Concept: Economic growth An outward shift of an economy's production possibilities curve is caused by an a. Increase in capital. b. Increase in labor. c. Advance in technology. d. All of the answers are correct
- A production possibilities frontier will shift outward for all of the following reasons except: A) an increase in the stock of capital. B) a technological improvement. C) opportunity cost is increasing. D) an increase in the labor force. E) none of th
- Which of the following, will not cause a shift in the production possibility curve? a. A rise in the price of one or both of the goods being produced, b. An improvement in the technology used to produce one of the goods, c. An improvement in the technol
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as nonrenewable resources will decl
- An increase in the labor force would be reflected in a society's production possibilities frontier (PPF) by an a. increase in opportunity cost. b. inward shift of the PPF. c. outward shift of the PPF. d. outward rotation along the x-axis. e. outward rotat
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as non-renewable resources will dec
- Which of the following does not expand economic growth? A. Widen economic opportunities B. Scarcity C. New technology D. Production facilities
- Technological innovations will cause: a. the production possibilities curve to shift to the left. b. the production possibilities curve to shift to the right. c. the production possibilities curve to stay the same. d. an economy to operate below its produ
- Which of the following determinants shifts the long-run aggregate supply curve to the right? A) Labor resource availability B) Changes in capital C) Production technology D) All of the above
- A production possibilities curve is drawn based on which of the following assumptions? a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as nonrenewable resources will declin
- An increase in a country's technology would most likely: A. move the country further up its production possibilities curve. B. move the country to a point closer to its production possibilities curve C. shift its production possibilities curve to the righ
- Which of the following does not expand economic growth? (a) New technology (b) Production facilities (c) Scarcity (d) Widen economic opportunities
- Which of the following would most likely shift the production possibilities curve inward? a. An increase in the number of hours factories are in use b. An increase in the production of capital goods c. Technological progress d. A decrease in the ave
- An improvement in technology causes the production possibilities frontier (PPF) to? a. shift to the right. b. pivot upward. c. shift to the left. d. pivot downward.
- A shift in the production possibilities frontier curve will occur as a result of all of the following except: a. A change in the endowment of resources, b. A change in technology, c. A change in the production of one good relative to another good, d. A ch
- An increase in shifts the production function, and makes it possible to produce higher level of GDP with capital per hour worked. a. technology; down; the same amount of b. technology; up; the same am
- Which of the following is assumed in constructing a typical production possibilities curve? (a) The economy is engaging in international trade (b) Production technology is fixed (c) The economy is using its resources inefficiently (d) Resources are perfec
- A shift in the production possibilities frontier curve will occur as a result of all of the following except: a) a change in the endowment of resources b) a change in technology c) a change in the production of one good relative to another good d) a chang
- Which of the following will cause the production possibilities curve for two goods to shift to the left? Select one: a. An increase in the amount of resources needed to produce the goods. b. A decrease in the technology used to produce the goods. c. An
- Which assumption about the firm's production technology implies that the revenue curve, when plotted as a function of labor, is upward-sloping? a. More inputs lead to more outputs. b. Marginal product of labor decreasing in labor. c. Marginal product of l
- Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)? a. We live in a world with only two goods. b. There are no increases in technology. c. There is no change in available resources. d
- The level of output that corresponds to the full employment of the labor force: a. is also called potential GDP. b. shifts to the right as the economy accumulates more resources. c. continuously shifts to the right over time as technological advances t
- Economic growth could be portrayed as: a. Inward shift from the production possibilities Frontier b. outboard shift from the production possibilities Frontier c. movement from one point to another poi
- The production possibilities curve will shift outward, upward, and \ or, to the right when? A) corporate profits increase. B) Economic growth occurs. C) Resources are used more efficiently. D) there is a reduction in labour.
- Technological changes that increase productivity shift the A. production function forward. B. average total cost curve downward. C. marginal cost curve upward as output increases. D. all of the above
- Which of the following best illustrates the idea of economic growth? a. being able to produce on the production possibilities frontier b. an outward shift of the production possibilities frontier c. being able to consume on the production possibilities fr
- Product C is an input to the production of Product D. Ceteris paribus, a technological improvement in the production of Product C will cause the market supply curve for Product D to: a) not shift b) shift to the left c) not enough information to answer th
- Which of the following would shift the production possibilities frontier outward? a) more efficient use of existing resources and technology. b) society's desire to produce more of the goods. c) an
- If there is an increase in labor productivity: a) the production possibilities curve would shift outward and the long-run aggregate supply curve would shift rightward. b) the production possibilities curve would shift inward and the long-run aggregate sup
- Which of the following will cause a decrease in aggregate quantity supplied? a. An increase in worker productivity. b. A decrease in the prices of inputs. c. A lower price level. d. Technological changes that lower production costs. e. An increase in the
- Which of the following causes the production possibilities curve to shift to the right? a) A war. b) d and e. c) The development of a new technology that improves productivity. d) c and e. e) The discovery of oil reserves.
- If there is an increase in capital per worker, what will happen to the aggregate production function curve? What will technological progress do to the aggregate production function curve?
- Which of the following is not likely to cause the production possibility frontier to shift out? a. An increase in the quantity of innovations b. An increase in specialization allows people to develop higher levels of skill at their chosen profession c. De
- Which one of the following would likely shift a production possibilities frontier inward? a) a drought. b) a technological improvement. c) a decrease in the price of natural resources. d) all of the above. e) None of the above since production possibility
- Generally, opportunity costs increase and the production possibilities frontier bows outward. Why? a. Unemployment is inevitable. b. Resources are not equally useful in all activities. c. Technology is slow to change. d. Labor is scarcer than capital.
- Which of the following is likely to affect the position and shape of society's production possibilities frontier? a. Volume of physical resources. b. Level of labour skills. c. Level of technology. d. Amount of factories on hand. e. All of the above are c
- We often work with production technologies that give rise to initially increasing marginal product of labor that eventually decreases. For such production technologies, the marginal product of labor is increasing so long as the slope of the production fr
- Any point inside a production possibilities curve gives what indication about the subject economy? a. That it is efficient b. That unemployment is decreasing c. That production levels are increasing d. That it is inefficient
- The usage of more high-tech machineries of production will increase the profitability of firm, thus they will increase production. An increase in production will shift what in which direction?
- Economic growth can be depicted on a production possibilities frontier (PPF) as an: a. inward shift of the PPF. b. outward shift of the PPF. c. inward rotation along the x-axis. d. inward rotation along the y-axis. e. increase in opportunity cost.
- When an economy is producing inside its production possibility frontier a. it is efficient so long as it is producing what people want. b. it must overcompensate by producing outside the curve to achieve efficiency. c. only technological advances will
- How has the shift in the US productive sector from traditional manufacturing to service-sector employment been tied to economic incentives? Has profitability been a factor in this resource shift? How has technological innovation played a role?
- Unemployment would cause an economy to a. experience an inward shift of its production possibilities frontier. b. produce outside its production possibilities frontier. c. produce inside its productio
- A movement along the production possibilities frontier will result from? A) a change in the stock of capital B) none of the above. C) a change in human capital. D) technological change. E) a change in the labour force.
- ___________ shift(s) the short-run aggregate supply only. A. Technology B. Entrepreneurship C. Non-labor input ___________ shift(s) the short-run aggregate supply only. A. Technology B. Entrepreneur
- Changes in technology can cause changes in the productivity of a resource. Technological change can be economy-wide, industry-specific, or can occur within one firm's production process. Explain how a change in the productivity of a resource changes the d
- The economy experiences economic growth if: A.the resource base decreases. B.the production possibilities frontier shifts inwards. C.the number of workers decreases. D.the production possibilities frontier shifts outwards.
- According to the method of growth accounting, which of the following contribute to economic growth? a. Capital growth b. Labor growth c. Technological progress d. All of the above
- Which of the following are factors of production? a. Capital and land b. Scarcity and shortages c. Technology and productivity d. Economics and business decisions
- On a production possibilities curve, a change from economic inefficiency to economic efficiency is obtained by which of the following? a. movement along the curve b. movement from a point outside the curve to a point on the curve c. movement from a point
- On a production possibilities curve, growth is represented by: a. a movement down the production possibilities curve. b. a movement up the production possibilities curve. c. an outward shift of the production possibilities curve. d. an inward shift of the
- Opportunity costs are reflected by: a. A swap of one technology for another along a nation's production possibilities curve. b. The negative slope of a nation's production possibilities curve. c. That fact that no matter what you choose you will be worse
- Economies of scale: A. means that unit production costs fall as production rises B. can constitute a barrier to the entry of new firms C. can provide a technological leadership advantage to innovators D. All of the above
- In the production possibilities model of an economy, when there is full employment of resources A. a nation will be operating at an interior point within its production possibilities curve. B. a nation will be operating on the production possibilities c
- All else equal, which of the following would cause an increase in output per effective worker? a. an increase in population b. an increase in technology c. a doubling of both capital and labor d. a doubling of capital and technology e. an increase in capi
- Will a technological advance result in a movement along the aggregate production function? Explain.
- Increasing opportunity costs of producing goods imply that the production possibilities curve will be: a. downward sloping. b. upward sloping. c. bowed inward. d. bowed outward.
- Increases in resources or improvements in technology will cause the production possibilities frontier to: a. shift outward. b. shift upward. c. become a straight line. d. become horizontal. e. become vertical.
- Given a production possibilities curve for defense goods and non-defense goods, which of the following is not true? A production point outside the curve: a) may be attained if new resources are discovered. b) may be attained by acquiring new technology.
- The economy is at a point below the production possibilities curve. What is the most likely explanation for this? a. All resources are not being utilized or a technical inefficiency exists in the production process b. A technical efficiency exists in a
- Production possibilities curves reflect: A. Constant opportunity costs if technology is held constant, no matter what skills the factors of production have. B. Maximum efficiency in the production of all outputs, given that technology does not change. C.
- A non-linear (bending) production possibilities model assumes that A. Some land or labor is more productive in one use than another B. Technology can advance C. the opportunity cost of producing more of something will remain constant
- Describe the change that occurs in the production possibility curve when society becomes more productive in producing both goods.
- If there is a shift in supply from a technology change that allows firms to make products cheaper, does the supply shift to the right or left of the original curve?
- Economic growth would increase as a result of all of the following except: a) increase in labor productivity. b) introduction of new technology in the manufacturing sector. c) decrease in investment spending. d) new factory construction in the northern st
- All the following may shift the Production Possibilities Curve to the right except: a) Training and education. b) An increase in population. c) Advanced technology. d) Preservation of the environment.
- The introduction of production technology to replace labor in a manufacturing process would likely result in which of the following? A. A shift in costs from variable costs to fixed costs B. A decrease in total manufacturing costs C. An increase in total
- Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive industry; the imitation of a new production process by another firm; an increase in a fir
- When constructing a typical production possibilities curve, economists assume a. economic resources are underutilized. b. resources are equally productive in many alternative uses. c. all available resources are fully employed. d. production technology is
- Any movement along a bowed-out production possibilities curve frontier involves A. the consumption of more capital goods. B. an improvement in technology. C. the production of more of one good and less of the other. D. the production of more of both goods
- An economy uses only labor as input to produce two goods, A and B. If its production possibilities frontier (PPF) of two goods is a negative-sloped straight line, what is the implication in opportunity costs? Will the law of increasing costs still hold?
- Suppose either computers or televisions can be assembled with the following labor inputs: |Units produced|1|2|3|4|5|6|7|8|9|10 |Total labor used|3|7|12|18|25|33|42|54|70|90 a) Draw the production possibilities curve for an economy with 54 units of labor.
- A. Diminishing marginal productivity B. Gains from technological factors C. Labor specialization D. Management hierarchy E. Management specialization F. Shirking Of the above, which are reasons why a firm may experience economies of scale? A. Yes /
- The [{Blank}] shows the economy's potential growth rate as determined by the real factors of production and the technology or new ideas that allow these factors to become more productive over time. a
- Economic growth can be pictured in a production possibilities curve diagram by: a. shifting the production possibilities curve out. b. moving from right to left along the curve. c. moving from left to right along the curve. d. shifting the production poss
- In reference to the concept of economic growth, explain the difference between a movement along an existing production possibility curve and an outward shift in a production possibility curve.
- The production possibilities frontiers depicted in the diagram to the right illustrate: (a) the likely result of a ground war. (b) both the labor force and capital stock increasing. (c) technological advances in the tank industry. (d) both the labor
- What would cause a firm's production function to change? a. Expanding the size of the factories, b. Increasing the quantity of labor and capital, c. Increasing the quantity of capital, d. Increasing the quantity of labor, e. The adoption of new techno
- Which of the following will result in a movement along the aggregate production function? A. a technological advance B. training of the workforce C. an increase in the country's capital stock
- If an economy experiences an increase in its capital, everything else constant, then its production possibilities frontier (PPF) will a. Expand outward proportionally b. Expand outward largely in the
- Along a given production-possibilities curve involving two goods, producing more of one good requires that: a. a better technology be employed. b. more of the other good be produced. c. less of the other good be produced. d. the production of the other go
- The productivity of a resource in influenced by all but which one of the following? a. Technology. b. Resources prices. c. Managerial ability. d. Productivity of other resources.
- Draw a production possibilities curve for a hypothetical economy producing capital goods and consumer goods. Suppose a major technological breakthrough occurs in the capital goods industry and the new technology is widely adopted only in this industry. Dr
- Better ideas or technological knowledge causes A. neither the production function nor the investment function to shift upward. B. both the production function and the investment function to shift upward. C. the production function to shift upward. D. the
- If a technological advance reduces the amount of variable resources needed to produce any given level of output, this will cause: a. the AVC curve to shift downward. b. the MC curve to shift downwa
- A non-linear ("bending") production possibilities model assumes that: a. technology can advance. b. all combinations of output are possible c. the opportunity cost of producing more of something will remain constant. d. some land or labor is more producti
- A productivity increase would be illustrated by a ____ shift in the production function. a. downward. b. leftward. c. upward. d. rightward.
- Which of the following would have the least amount of influence on a manager's choice of which inputs to employ in a production process? A) The price of a competitor's output. B) The technology of the production process. C) The marginal productivity of th
- A firm has successfully adopted a positive technological change when: a. it can produce more output with the same inputs b. can pay its workers less yet increase its output c. it sees an increase in w
- Suppose there is an increase in technology that allows workers used in the production of good X to produce more of good X per hour they work. A result of this increase in technology will be (assume th
- The production possibilities curve would shift outward as a result of a(n): a) decrease in labor productivity. b) increase in absenteeism. c) new integrated circuit that revolutionizes the defense industry. d) increase in short-run aggregate supply. e) in
- A technological advance lowers production costs such that the quantity supplied increases by 60 units of the product at each price. As a result of the technological change, equilibrium output in this
- An advance in technology in the production of good X causes a) the supply curve for good X to change from upward sloping to vertical. b) the supply curve for good X to change from vertical to upward sloping. c) a rightward shift in the supply curve for
- 1. Specialization and trade allow individuals to: A. their own production possibilities frontier (PPF) B. shift their PPF outward. C. produce more goods with less technology. D. eliminate scarcity. E
- Draw a PPF that represents the production possibilities for goods X and Y if there are constant opportunity costs. -Next, represent an advance in technology that makes it possible to produce more of X but not more of Y. -Finally, represent an advance in
- Because of increasing opportunity costs, the production possibility curve: a. is bowed out from (or concave to) the origin b. can be either downward- or upward-sloping c. at first rises, then falls e