1. Improvements in technology. 2. Increases in the supply (stock) of capital goods. 3. Purchases of expanding output. 4. Obtaining the optimal combination of goods, each at least-cost production. 5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources. Which set of items in the accompanying list would shift an economy's production possibilities curve outward?

Respuesta :

Answer:

The answers are,

1. Improvements in technology

5. Increases in the quantity and quality of natural resources. 6. Increases in the quantity and quality of human resources

Explanation:

To shift the production possibility frontier outwards, the entire production capability of the economy has to increase. For this, recognition of new resources, enhancement of human capital and production techniques and the improve in technology has to happen.

The PPC is a graph that shows the different combination of putouts that are made by the given resources and technology. The PPC shows the scarcity and trade-offs.

  • An outward shift of PPF means that economy has increased its capacity to produce.
  • Thus the options 3 and 4 are correct. That is 3. Purchases of expanding output.  4. Attaining the optimal combination of the goods, each at the least-cost of production.

Learn more about the list would shift an economy's production.

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