It is possible for an economy to increase its production of computers and, at the same time, to increase its production of cars if the economy

a. moves downward and to the right along its production possibilities frontier and the frontier is bowed outward.
b. moves upward and to the left along its production possibilities frontier and the frontier is bowed outward.
c. moves in either direction along its production possibilities frontier and the frontier is a straight line.
d. moves from a situation of inefficient production to a situation of efficient production

To determine the correct answer, let's first understand what a production possibilities frontier (PPF) represents.

A PPF is a graphical representation showing the maximum combination of goods and services that an economy can produce when all of its resources are fully utilized, given its existing technology and resources. It illustrates the concept of trade-offs, as producing more of one good requires sacrificing the production of another.

Now, let's analyze the options:

a. Moves downward and to the right along its PPF and the frontier is bowed outward: This option suggests that the economy is becoming more efficient in utilizing its resources, as it is able to produce more of both computers and cars. The bowed-outward shape indicates that the economy experiences increasing opportunity costs.

b. Moves upward and to the left along its PPF and the frontier is bowed outward: This option suggests that the economy is becoming less efficient in utilizing its resources, as it is producing fewer computers and cars. Moving in this direction would imply a decrease in overall production.

c. Moves in either direction along its PPF and the frontier is a straight line: This option suggests that the economy has constant opportunity costs for producing computers and cars. Moving in either direction along the PPF does not allow for an increase in both computer and car production simultaneously.

d. Moves from a situation of inefficient production to a situation of efficient production: This option implies a movement from a point inside the PPF to a point on the PPF itself. However, it does not indicate the possibility of increasing production of both computers and cars simultaneously.

Based on the analysis, the correct answer is: a. Moves downward and to the right along its production possibilities frontier and the frontier is bowed outward. This indicates an improvement in resource allocation and an increase in overall production of both computers and cars.