Question 6
Basic ConceptsA rightward shift in the production possibility frontier may be due to
- A.use of inferior inputs
- B.inefficiency
- C.improvement in production techniques and practices
- D.changes in the product mix
- E.changes in consumers' tastes and preferences.
Show the answer and explanation
Answer: C (improvement in production techniques and practices)
Explanation
Better techniques let the economy produce more of both goods with the same resources, pushing the frontier outwards.