How does economic growth influence the production possibilities ...

[Mimi]

How does economic growth influence the production possibilities frontier?
 
  What will be an ideal response?

Question 2

Is the 208 million that electricity producers will spend to comply with the new rules part of the opportunity cost of producing electricity?
 
  What will be an ideal response?

[phuda]

Answer to Question 1

Economic growth shifts the PPF outward. Persistent outward shifts in the production possibility frontiereconomic growthare caused by the accumulation of resources, such as more capital equipment or by the development of new technology.

Answer to Question 2

The 208 million is part of the opportunity cost of producing electricity because it represents the purchase of goods and services neces-sary to produce electricity.