A production possibilities frontier can shift outward for all of the following reasons except:
A)a decrease in the size of the labor force.
B)an increase in the skills of the labor force.
C)an improvement in technology.
D)a larger work force.
E)a larger capital stock.

Question

Quizplus · Accepted Answer

An outward shift in the production possibilities frontier requires an increase in productive resources, such as labor and capital, or an improvement in technology. Therefore, a decrease in the size of the labor force would not lead to an outward shift in the production possibilities frontier.

A Production Possibilities Frontier Can Shift Outward for All of the Following