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18 September, 13:42

The production possibilities curve may shift outward as a result of a (n)

A. increase in worker training courses.

B. decrease in costs of production.

C. increase in short run aggregate supply.

D. decrease in short run aggregate supply.

E. increase in consumer spending.

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  1. 18 September, 17:19
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    Statements A, B, C, and E will all cause shift of production possibilities curve outwards. This is because:

    Statement A: Training of workers will mean improved skills and knowledge. This will in turn lead to increased productivity and may lead to efficiency and thus increased production.

    Statement B: Decrease in cost of production will lead to production of more goods and thus the curve will shift outwards.

    Statement C: Increase in short-run aggregate supply may mean supply of more raw materials to the production thus increased productivity.

    Statement D: Increase in customer spending will mean increased demand and thus leads to shifting in supply. This leads to increased production.
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