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Central Problems & the PPC · Question 50 of 87

Question 50

HardOriginal question

Read 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.

Options for question 50

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. I is true: more resources raise capacity and push the curve out.

  2. 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 time
100 s
Your time
—
The rule this testsThe production possibility curve
Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.