Question

if a society can produce only two goods—pizza and wings—which of the following would result in an outward shift of that society’s production possibilities frontier (ppf)? select an answer a. a new pizza assembly line that improves the productive capacity of pizza makers b. population decline in the society c. a substantial increase in unemployment in the society d. a decision by wing makers to save electricity by producing at half of efficient capacity

Explanation:

An outward shift of the PPF represents an increase in a society's overall productive capacity.

• Option A: A new pizza assembly line boosts productive capacity for pizza, and this technological improvement can expand the society's total potential output of both goods (by reallocating resources or enabling more efficient production), shifting the PPF outward.
• Option B: A population decline reduces the labor force, decreasing productive capacity and shifting the PPF inward.
• Option C: Higher unemployment means the society is not using existing resources fully; this is a movement inside the PPF, not a shift.
• Option D: Producing at half efficient capacity is underutilization of resources, a movement inside the existing PPF, not a shift.

Answer:

A. a new pizza assembly line that improves the productive capacity of pizza makers