Multiple Choice
The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1-4
-Refer to Figure 1-4.An outward shift of the production possibilities boundary fromPPB1 to PPB2 indicates which of the following?
A) an increase in the price of raw materials for consumer goods
B) growth in the countryʹs productive capacity
C) an increase in the price of raw material for capital goods
D) more of the countryʹs resources are being used
E) the countryʹs resources are being used less efficiently
Correct Answer:

Verified
Correct Answer:
Verified
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