A production possibilities frontier can shift inward if there is
A)an increase in the unemployment rate
B)mandatory retirement at age 55
C)an improvement in technology
D)a larger work force
E)a larger capital stock

Question

Quizplus · Accepted Answer

Mandatory retirement at age 55 reduces the labor force, which can decrease the economy's capacity to produce goods and services, causing the production possibilities frontier to shift inward.

A Production Possibilities Frontier Can Shift Inward If There Is