20) Consider a production possibilities frontier with corn production … plant and machinery and new technology; Inward migration of younger, skilled workers; Discovery of new natural resources Question 9 A shift outward of the production possibilities frontier line indicates a. the producer is less efficient and incurring a reduction in economic wealth. E. if resources are used to produce capital goods. D) closer it will come to having a comparative advantage in the production of all goods. A) tastes and preferences change B) the quantity of money in the economy grows C) prices rise D) human capital accumulates E) the political party in power changes. Investment in capital i.e. The production possibility frontier (PPF) is determined by its slope, or rather, the opportunity cost. b would move it left. Median response time is 34 minutes and may be longer for new subjects. Question: 2.Which Of The Following Would Not Shift The Production Possibilities Frontier Outward? One of the central principles of economics is that everyone faces tradeoffs because resources are limited. (x), (y) and (z) B. The-production possibilities frontier will shift outward a if? An outward shift of the production possibilities curve represents. C) movement from a point inside the frontier to a point on it. (z) a resource-saving advance in production technology A. However, improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. Answer: NOT an upgrade of capital to the best available technology..... it possibly is a decrease in the unemployment rate... because with an increase in employment rate u have an increase in factors of production . d would simply change the axes. We have assumed that the amount of time that Julio works is fixed at 8 hours. Ways of causing an outward shift of a country’s production possibility frontier: . E) more bowed out will be the shape of the production possibilities frontier. An economy’s production possibilities frontier would shift outward as a result of (x) a decrease in the rate of unemployment as more workers became employed. 13) Consider a country that has two industries. 0 0. The production possibilities frontier will shift outward A. if resources are used to produce consumption goods. b. the entire PPF to shift inward. C) shifts the production possibilities frontier inward in the future. For example: Steel was being used to produce the product, but now the supply of steel in the economy has reduced which has caused a reduction in overall production. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. Most relevant text … Hypothetically, the production possibilities curve would shift outward if everyone worked more hours and took less leisure time . When the number of labor force increases, economy’s possibilities to produce goods and services will increase too. Alternatively, Julio could decide to work more. The production possibilities frontier shifts outward when _____. The production possibility frontier will shift outward for all of the following from TEST BANK 132 at DeVry University, New York B) must decrease the future production of consumer goods. D) shifts the production possibilities frontier outward in the future. A production possibilities frontier with a bowed outward shape indicates an increase in opportunity costs as more and more of one good is produced. However, improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. The Production Possibilities frontier will shift outward if: A) production occurs outside of the production possibility fronter B) If resources are used to produce capital goods. Less government spending C. Better training of employees which resulted in increased productivity D. Productive inefficiency as a result of inadequate factory maintenance One way the PPF can shift outwards is if there is an increase in the active labour supply. B) production possibility frontier to shift inward. The new innovations that create technological advancements such as new machines and industrial assembly lines increase the rate of production, thus shifting the PPF outward. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. Source(s): Finished semester of AP macro economics. So production possibilities curve shift outward. Which of the following would shift the production possibilities frontier outward? An increase in demand at lower market prices B. C) faster the production possibilities frontier will shift inward. But improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. Which of the following events would cause a production possibilities frontier to shift outward? These tradeoffs are present both in individual choice and in the production decisions of entire economies.. e would shift left. 1. economic inflation. ... B mean the production is inside the curve. An increase in the production of capital goods A) must increase the current production of consumer goods. C. if resources are not used in production. The production possibilities frontier can shift outward if: all of the above are correct : there is an increase in technology : the government increases the amount of money in the economy : resources can be moved from the production of one good to another: How aqhomework.com works the entire production possibilities frontier (PPF) to shift outward. *Response times vary by subject and question complexity. A left shift in the production possibility curve may be caused by a reduction in resources or inefficiency. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. Part (b) of Figure 6.18 "Two Ways of Shifting the Production Possibilities Frontier Outward" shows what the production possibilities frontier would look like if Julio worked 10 hours per day instead of 8 hours. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. [Answer] The PPF will shift outward for which reason? So far, we've talked about Econ Isle's possibilities up to its frontier, but the frontier line itself can shift. a production possibility frontier might shift inwards because the labour force shrinks,the supply of raw materials is depletes or a natural disaster decreases the stock of physical capital. Two primary changes can cause the frontier to shift: a change in productive resources and technological change. An outward shift of the production possibility frontier may be caused by: A. A. a reduction in inefficiency. a. But improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. (y) an increase in immigration of skilled workers from neighboring economies. List four ways that the PPF can be shifted outward. D. if technology declines. D) movement toward the origin. A production possibility frontier (PPF) illustrates the combinations of output of two products that a country can supply using all of their available factor inputs in an efficient way. The shift from a recession toward the frontier is sometimes called an economic expansion. - Subject Economics - 00735026 B. if production occurs outside the production possibilities frontier. b. However, if we restrict our B) faster the production possibilities frontier will shift outward. ... Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the next four questions. An increase in the capital stock and advance in technology, both cause production possibilities increase and make the production possibilities curve shift outward. Answer: B Diff: 2 Type: C 66) An improvement in technology will cause the A) production possibility frontier to shift outward. Don't use plagiarized sources. . ... a. seems legit, but c is a better answer. . There are also other factors such as increased labor participation and increases in resources that can shift the PPF outward. (x) and (y), only C. (x) […] A production possibilities frontier is bowed outward when the estimated worth of tradeoff between two products are being manufactured depending on how much of each item is being made. If we were to construct a production possibilities curve for leisure versus other goods, this would be shown as simply a movement along the curve. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. However, improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. 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