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
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...
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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.