Question

If older capital equipment were not replaced with newer and more efficient machinery, the production possibilities frontier might move ____.

a. Right
b. Toward the origin
c. Efficiently
d. Decreasing

Answer 1

The production possibilities frontier might move toward the origin.

Step-by-step explanation:

The answer to the question is b. Toward the origin. If older capital equipment were not replaced with newer and more efficient machinery, the production possibilities frontier would shift toward the origin. This means that the economy would be producing less output and operating at a lower level of efficiency.