A&P II Lymphatic System Practice Exam

Which of the following would cause an outward shift of a country's production possibility frontier?

An increase in the rate of unemployment A reduction in the retirement age An increase in the quality of capital goods A shift in consumer preferences towards capital goods

Correct Answer:

An increase in the quality of capital goods

Explanation:

An outward shift of the PPF represents economic growth and an increase in productive capacity, which is achieved through an increase in the quality or quantity of factors of production, such as improved capital goods.

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