An inward shift in the U.S.economy's production possibility frontier could represent:
A)U.S.workers moving to Canada.
B)workers moving from New Jersey to Massachusetts.
C)U.S.economic growth.
D)a movement from labor-intensive to capital-intensive industries in some states.

Question

Quizplus · Accepted Answer

An inward shift in the U.S. economy's production possibility frontier (PPF) indicates a decrease in the economy's ability to produce goods and services. This could be caused by a reduction in productive resources, such as labor. U.S. workers moving to Canada would reduce the labor force in the U.S., potentially causing such an inward shift. Movements within the U.S., economic growth, and shifts between industry types generally do not imply a reduction in the economy's overall productive capacity.

An Inward Shift in the U