A production possibilities frontier can shift outward for all of the following reasons except:
A. a larger work force.
B. a decrease in the size of the labor force.
C. an increase in the skills of the labor force.
D. an improvement in technology.
Production Possibility Frontier:
A production possibility frontier can be defined as a curve that represents different combinations of two services and products that an economy can manufacture in a given period of time by using all the available resources optimally.
Answer and Explanation: 1
- The correct option is B. A decrease in the size of the labor force.
A PPF (Production Possibility Frontier) will shift outwards when there is an...
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fromChapter 1 / Lesson 5
Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.