Which of the following will not shift an economy's production possibilities curve outward? (a) an...

Question:

Which of the following will not shift an economy's production possibilities curve outward?

(a) an increase in technology

(b) an increase in the number of workers available

(c) an improvement in the literacy rate

(d) a reduction in the unemployment rate

Shift in PPC:

PPC or the production possibilities curve can shift in case of two scenarios only. The first case is when there is a change in the state of technology for the production of the goods. The second case is when there is a change in the level of resources available in the economy.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

The correct option is (c) an improvement in the literacy rate.

An improvement in the literacy rate of an economy will not cause an outward shift in...

See full answer below.


Learn more about this topic:

Loading...
Shifts in the Production Possibilities Curve

from

Chapter 1 / Lesson 5
269K

Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.


Related to this Question

Explore our homework questions and answers library