An increase in capital goods and a decrease in consumer goods will: A) eventuall

Question

An increase in capital goods and a decrease in consumer goods will:
A) eventually lead to a shift to the right of the production possibilities curve.
B) increase a nation's capacity to produce.
C) lead to more rapid economic growth.
D) do all of the above.
79. Increases in resources or improvements in technology will tend to cause a society's production possibilities curve to:
A) shift inward to the left.
B) shift outward to the right.
C) remain unchanged.
D) become vertical.

80. Capital, labor, and natural resources combine to produce goods and services. Which of the following will not lead to an increase in the ability of an economy to produce goods and services?
A) increased training for workers
B) establishing a more productive technology
C) new government restrictions on which technologies may be used to produce goods and services
D) discovery of new oil reserves

Explanation / Answer

Capital goods are those used in production. An increase in capital goods will increase the nations capacity to produce, which is represented by an expansion of the production possibilities curve and leads to more rapid economic growth. The answer is then: D all of the above Increases in resources or technology means that more can be produced. This is represented by an outward shift (to the right). The answer is then B. Restrictions on the use of technology mean that these technologies can not be used in production. So the answer is C

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