Chapter 3, Problem 4MCQ

To determine

The question requires us to determine the factor which allows the economy to move from point B to point F.

Explanation of Solution

An economy is producing two goods then an increase in the production of these goods, or to reach the not-feasible points, is possible in two situations:

• When resources increase,
• When there is an improvement in technology 

In both situations, the production possibilities curve shifts outward and causing the production to increase and helping the economy to produce at the not-feasible point F.

Therefore, more workers, new buildings, technological advances, and the discovery of new resources will allow the economy to move from point B to point F.

Option “e” is correct.

Economics Concept Introduction

The production possibility curve shows the trade-offs between the two products an economy is producing by using the given resources.