Which of the following events would create economic growth, that is, shift the production possibilities frontier A. An increase in the available natural resources. B. An increase in the available labor. C. An increase in technology that affects the production of both goods. D. All of the above.

The correct answer is: **D. All of the above.** Here's why each option contributes to economic growth by shifting the production possibilities frontier (PPF) outward: 1. **An increase in the available natural resources (Option A):** - **Impact:** More natural resources (such as land, minerals, or raw materials) provide the economy with a greater base of inputs for production. With more resources, the economy can produce more goods and services. - **PPF Shift:** Outward shift, indicating increased production capacity. 2. **An increase in the available labor (Option B):** - **Impact:** A larger workforce means more human capital is available for producing goods and services. This can lead to higher overall output. - **PPF Shift:** Outward shift, reflecting an expansion in the economy's productive capabilities. 3. **An increase in technology that affects the production of both goods (Option C):** - **Impact:** Technological advancements improve the efficiency of production processes, allowing the same amount of resources to produce more output or produce higher-quality goods. - **PPF Shift:** Outward shift, demonstrating enhanced efficiency and productivity. When **any** of these factors—resources, labor, or technology—increase, the economy's ability to produce goods and services expands, resulting in economic growth. Therefore, all the listed options contribute to shifting the PPF outward. **Summary:** All of the events listed (A, B, and C) would lead to economic growth by expanding the production possibilities frontier.