AP Macroeconomics Question 408: Answer and Explanation
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Suppose that the production possibility frontier (PPF) of this nation moves from PPF1 to PPF2. Which of the following could be the cause of this movement?
- A. Technological improvements in the production of tractors
- B. A long-lasting and destructive drought
- C. A more efficient use of steel, an important raw material in the production of tractors
- D. An economy-wide improvement in the productivity of the labor force
- E. More effective pesticides used to protect crops from insect damage
Correct Answer: E
E-The capacity to produce corn has increased, but the capacity for tractor production is the same. More effective pesticides do not improve the ability to produce tractors but improve the ability to harvest corn.