In Order for a Production Possibilities Curve to Shift to the Right

question 41

Multiple Choice

In order for a production possibilities curve to shift to the right, which of the following must occur?

• A) government involvement
• B) increasing consumer wants
• C) economic growth
• D) reductions in the supply of resources

---

Definitions:

Price-taker Industry

An industry in which individual firms have no control over the price of their product and must accept the market price set by the forces of supply and demand.

Price-taker Industry

An industry in which individual firms have no control over the price of their product; they "take" the market price as given.

Long-run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have any incentives to enter or exit the market, resulting in an optimal allocation of resources.