The production possibilities frontier will shift outward A. if resources are used to produce consumption goods. B. if technological advances occur. O. if resources are not used to produce capital goods. D. if production occurs outside the production possibilities frontier. E. if resources are not used in production.

The **production possibilities frontier (PPF)** represents the maximum combinations of two goods that an economy can produce using its available resources and technology. For the PPF to shift outward, indicating economic growth or an increase in production capacity, typically one of the following must occur: 1. **Technological Advancements**: Improvements in technology allow for more efficient production, enabling the economy to produce more of both goods without needing additional resources. 2. **Increase in Resources**: An increase in the quantity or quality of resources (like labor, capital, or natural resources) can expand the economy's production capacity. Analyzing the options: - **A. If resources are used to produce consumption goods.** - **Incorrect.** Choosing to produce more consumption goods doesn't inherently increase the economy's production capacity. - **B. If technological advances occur.** - **Correct.** Technological advancements improve efficiency and productivity, shifting the PPF outward. - **C. If resources are not used to produce capital goods.** - **Incorrect.** Not investing in capital goods can hinder future production capacity and economic growth. - **D. If production occurs outside the production possibilities frontier.** - **Incorrect.** Production outside the PPF is typically unattainable with current resources and technology. - **E. If resources are not used in production.** - **Incorrect.** Idle resources mean the economy isn't reaching its potential, which doesn't expand the PPF. **Answer:** **B. if technological advances occur.**