A production possibilities frontier shifts outward FOR ALL OF THE FOLLOWING REASONS EXCEPT

Question

Quizplus · Accepted Answer

An increase in opportunity cost would cause the production possibilities frontier to shift inward, not outward. All the other options listed (technological improvement, increase in capital stock, increase in labour force, and increase in human capital) would increase a society's ability to produce more goods and services, and therefore shift the production possibilities frontier outward.

A Production Possibilities Frontier Shifts Outward FOR ALL OF THE FOLLOWING