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.
The
Chapter 3 Solutions
Krugman's Economics For The Ap® Course
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education