If an economy produces only steel and wheat, a new fertilizer will not affect the production of either wheat or steel. cause the production of steel to increase at every point along the production possibilities curve but not affect the production of wheat, that is the curve moves outward on the steel axis only. cause the production of both wheat and steel to increase at every point along the production possibilities curve, that is the curve moves outward on both the wheat axis and the steel axis. cause the production of wheat to increase at every point on a production possibilities curve but not affect the production of steel, that is the curve moves outward on the wheat axis only.

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26-02-2020
Business

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If an economy produces only steel and wheat, a new fertilizer will not affect the production of either wheat or steel. cause the production of steel to increase at every point along the production possibilities curve but not affect the production of wheat, that is the curve moves outward on the steel axis only. cause the production of both wheat and steel to increase at every point along the production possibilities curve, that is the curve moves outward on both the wheat axis and the steel axis. cause the production of wheat to increase at every point on a production possibilities curve but not affect the production of steel, that is the curve moves outward on the wheat axis only.

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TomShelby TomShelby · Answer 1 · 2020-02-27T08:19:39+01:00

Answer:

cause the production of wheat to increase at every point on a production possibilities curve but not affect the production of steel, that is the curve moves outward on the wheat axis only.

Explanation:

The fertilizer is an input for the wheat industry, therefore it will not have an impact on the efficienty of the resources used in the steel industry.

With the new input which is more efficient the economy will be able to produce a higher yield of weath but, will not change the steel production possibilities. This will make the FPP move outwards in the weath axis only .