?

AP® Microeconomics

Free Version

Upgrade subject to access all content

Easy

Production Possibilities Curve: Increase

APMICR-42NJ4B

The graph below represents a country's production possibilities curve for aircraft carriers and automobiles.

Jane Schaefer. Created for Albert.io. Copyright 2016. All rights reserved.

Which of the following could explain the shift in the production possibilities curve shown above?

A

The unemployment rate falls from 10% to 5%.

B

The unemployment rate increases from 4% to 7%.

C

International conflicts increase demand for military goods such as aircraft carriers.

D

Robot technology improves the efficiency with which automobiles and aircraft carriers are built.

E

The country's population declines.