Asked by

Hushan Dhanoa
on Dec 12, 2024

verifed

Verified

Over time, an increase in a nation's stock of physical capital will

A) shift the production possibilities curve inward.
B) cause an economy to operate inside its production possibilities curve.
C) shift the production possibilities curve outward.
D) eliminate the basic economic problem of scarcity.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.

Production Possibilities Curve

A graph that shows the different quantities of two goods that an economy can produce using all of its resources efficiently.

Scarcity

Fundamental concept of economics that indicates that there is less of a good freely available than people would like.

  • Recognize the factors that can shift the PPC inward or outward, signifying changes in an economy's potential output.
  • Evaluate the impact of labor productivity and investment in physical capital on an economy's production possibilities.
verifed

Verified Answer

JR
jessica rueloDec 12, 2024
Final Answer:
Get Full Answer