An increase in the stock of capital will cause the

A) production possibility frontier to shift outward.
B) production possibility frontier to shift inward.
C) economy to move down the production possibility frontier.
D) economy to move closer to its production possibility frontier.

Question

Fatima Alyammahi · Accepted Answer

Final Answer : A, Explanation :  An increase in the stock of capital expands an economy's capacity to produce goods and services, thereby shifting the production possibility frontier outward, indicating potential for greater production levels.

An increase in the stock of capital will cause the

A) production possibility frontier to shift outward.
B) production possibility frontier to shift inward.
C) economy to move down the production possibility frontier.
D) economy to move closer to its production possibility frontier.

Definitions

Learning Objectives

Learning Objectives

Related questions

An increase in the stock of capital will cause theA) production possibility frontier to shift outward.B) production possibility frontier to shift inward.C) economy to move down the production possibility frontier.D) economy to move closer to its production possibility frontier.

Definitions

Learning Objectives

Learning Objectives

Related questions

An increase in the stock of capital will cause the

A) production possibility frontier to shift outward.
B) production possibility frontier to shift inward.
C) economy to move down the production possibility frontier.
D) economy to move closer to its production possibility frontier.