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A Production Possibilities Curve Is Plotted for a Nation Producing

Question 37

Multiple Choice

A production possibilities curve is plotted for a nation producing cotton and jute.Which of the following will cause a parallel rightward shift of the production possibilities curve?


A) The invention of a new fertilizer that increases cotton production by 10 percent, without any effect on jute production
B) The invention of a new fertilizer that increases jute production by 5 percent, without any effect on cotton production
C) The invention of a new fertilizer that increases the production of both cotton and jute by 10 percent
D) A twofold increase in the price of all cotton products and a threefold increase in the price of all jute products

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