A rightward (an outward) shift of a nation's production possibilities curve could be caused by:
a. a decrease in technology.
b. an increase in resources.
c. producing more consumer and fewer capital goods.
d. a decline in the labor force's level of education and skills.
QUESTION 2Reductions in available resources will cause the production possibilities curve to:
a. expand. b. disappear.
c. become vertical. d. shift inward.
QUESTION 3In order for an economy to shift its production possibilities curve rightward, it must:
a. suffer resource unemployment.
b. experience an increase in its resources and/or an improvement in its technology.
c. use its resources more efficiently than at points along the curve.
d. all of these.
QUESTION 4On a production possibilities curve diagram, greater entrepreneurship:
a. causes the curve to shift outward.
b. keeps the economy on the curve.
c. prevents movement along the curve.
d. keeps the economy at the corners of the curve.
QUESTION 5Which of the following would most likely cause the production possibilities curve for DVDs and food to shift outward?
a. A choice of more food and more DVDs.
b. A choice of more food and less DVDs.
c. A choice of more DVDs and less food.
d. An increase in the quantity of natural resources.
QUESTION 6Which would be least likely to cause the production possibilities curve to shift to the right?
a. An increase in the labor force.
b. Improved methods of production.
c. An increase in the education and training of the labor force.
d. A decrease in unemployment.
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