Question 50
HardOriginal questionRead the two statements and choose the correct option.
I. Growth of resources shifts the PPC to the right.
II. Better use of existing resources shifts the PPC to the right.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
I is true: more resources raise capacity and push the curve out.
II is false: using idle resources moves the economy from inside the curve onto it; the curve itself does not move.
- Concept
- Shift versus movement towards the PPC
- Typical timeTypical
- 100 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Central Problems & the PPC, at your own pace.