Question:
Which of the following would cause an outward or rightward shift in the production possibilities curve?
(1) An increase in unemployment
(2) An increase in inflation
(3) An increase in capital stock
(4) A decrease in natural resources
(5) A decrease in the number of workers
Correct Answer:
(3)
Answer Explanation:
An outward shift of the PPC represents economic growth, which occurs when there is an increase in the quantity or quality of factors of production, such as an increase in the capital stock.
Topic: PPC Year: 2022
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