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Question 28 If an economy only produces 2 things (say bat houses and salmon habitat), and adding tools increases your to produce bat houses, what effect will this have on the PPF for the economy? A. B. C. D. E. The PPF will move outward along the bat axis. The PPF will shift inward. The PPF will move outward along the salmon axis. The PPF will not change. The PPF will shift outward
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Answer #1

Answer is option A)

Since ppf is defined as locus of combinations of two goods that are produced efficiently using the available resources.

Now if the resources increase for the production of a particular good, then ppf rotates or moves outwards along the axis of that good

Shifting of the ppf takes place when change in resources affect the production of both the goods.

Thus now since ability to produce bat houses increase, so now PPF moves outwards along bat axis.

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