Question

the diagram shows a production possibility curve tu. what might cause a shift of the curve to xy?
a) decrease wealth of a country
b) lower unemployment
c) redistribution of resources
d) technological progress

1. the diagram shows a country’s production possibility curve. why does the curve slope downwards?

a) there are decreasing costs
b) there are diminishing returns to scale
c) consumers are indifferent between consumer goods and industrial goods
d) resources are scarce

Explanation:

For the first question, technological progress increases an economy's productive capacity, shifting the production - possibility curve outward. A decrease in a country's wealth would shift it inward, lower unemployment just moves to a point on the existing curve, and resource redistribution does not shift the curve.
For the second question, the production - possibility curve slopes downward because resources are scarce. To produce more of one good, resources must be diverted from the production of another good.

Answer:

1. d) Technological progress
2. d) Resources are scarce