Assume that an economy produces cotton t-shirts and metal stop signs. Which of these would cause the production possibilities curve for this economy to shift outward? A) an increase in the labor force B) a decrease in the price of cotton C) a decrease in the demand for t-shirts Eliminate D) an increase in the prices of both goods

The correct option is A.

Because the expansion of the production possibilities curve occurs when

the allocation of resources or also increases in the

the productivity of these resources, which results in the

economic growth.

It is also possible that the curve moves towards the left, which would be

possible before a strong natural disaster, a war or any situation that

reduces the capacity of production of the economy and its productivity