move the nation from producing within the PPC to producing at a point closer to the
PPC.
cause a movement along the PPC downward and rightward.
Feedback
When the nation's capital stock increases, it causes the PPC to shift outward, away
from the origin. This shift signifies that the economy's potential to produce both
goods has increased. It indicates that the nation can now produce more of both
goods.
Question 3
Capital accumulation
shifts the production possibilities curve outward.
makes the production possibilities curve steeper.
shifts the production possibilities curve inward.
has no impact on the production possibilities curve.
Feedback
Capital accumulation positively impacts the PPC by expanding the economy's
production possibilities resulting in an outward shift of the curve. This shift represents
an economy's ability to produce more goods and services, ultimately contributing to
its growth and prosperity.
Question 4
If production of two goods is currently at levels such that we are inside the
production possibilities curve
2
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