Changes

7. What is needed to reach point D in Figure A (on p.3)?  (In other words, what causes a production possibilities curve to shift outward?)

7. What is needed to reach point D in Figure A (on p.3)?  (In other words, what causes a production possibilities curve to shift outward?)

:There would need to be a shift in the production possibility frontier of the goods outward, due to an increase in the production and efficiency, in order for point D to be reached. This increase in overall output of goods could occur due to advances in technology, an increase in the workforce, or better equipment available for businesses.

:There would need to be a shift in the production possibility frontier of the goods outward, due to an increase in the production and efficiency, in order for point D to be reached. This increase in overall output of goods could occur due to advances in technology, a reduction in taxation or regulation, an increase in the workforce, or better equipment available for businesses.

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