QuestionJuly 19, 2025

All of the following will help the PPC shift out except: A. competitive markets. B. enforcement of property rights. C. high saving rates. D. All of the above are correct.

All of the following will help the PPC shift out except: A. competitive markets. B. enforcement of property rights. C. high saving rates. D. All of the above are correct.
All of the following will help the PPC shift out except:
A. competitive markets.
B. enforcement of property rights.
C. high saving rates.
D. All of the above are correct.

Solution
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Answer

D. All of the above are correct. Explanation 1. Identify factors that shift the PPC The Production Possibility Curve (PPC) shifts outwards with improvements in resources, technology, or efficiency. 2. Analyze each option A. Competitive markets can lead to efficient resource allocation, potentially shifting the PPC outward. B. Enforcement of property rights encourages investment and innovation, which can shift the PPC outward. C. High saving rates can lead to more capital accumulation, potentially shifting the PPC outward. 3. Determine the exception Since all options contribute to shifting the PPC outward, none of them are exceptions.

Explanation

1. Identify factors that shift the PPC<br /> The Production Possibility Curve (PPC) shifts outwards with improvements in resources, technology, or efficiency.<br />2. Analyze each option<br /> A. Competitive markets can lead to efficient resource allocation, potentially shifting the PPC outward.<br /> B. Enforcement of property rights encourages investment and innovation, which can shift the PPC outward.<br /> C. High saving rates can lead to more capital accumulation, potentially shifting the PPC outward.<br />3. Determine the exception<br /> Since all options contribute to shifting the PPC outward, none of them are exceptions.
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