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1.1 Economic methodology and the economic problem

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Question 62

An economy produces two categories of output: Digital Services and Agricultural Goods. The diagram below shows a shift in the economy's production possibility frontier (PPF) from PPF1\text{PPF}_1PPF1​ to PPF2\text{PPF}_2PPF2​:

Production Possibility Frontier Pivot

Which of the following events is most likely to have caused this shift?

An increase in the net migration of high-skilled software developers into the country.

A significant technological innovation in automated crop-harvesting equipment.

A decrease in the central bank's base interest rate, which stimulates consumer spending.

A nationwide retraining program that redirects agricultural workers into high-tech services.

1.1 Economic methodology and the economic problem Questions

  1. A Level
  2. /Economics
  3. /1.1 Economic methodology and the economic problem