How will a reduction in the national unemployment rate affect a nation's production possibilities frontier (PPF)?
A) It will cause the PPF to shift inward.
B) It will cause the PPF to shift outward.
C) It will move society to a point farther inside the PPF.
D) It will move society outward to a point closer to or on the PPF.
E) It will push society to a point outside its PPF.

Question

Quizplus · Accepted Answer

A reduction in the unemployment rate means that more resources (labor) are being utilized, allowing the economy to produce more goods and services. This moves society closer to or on the PPF, indicating more efficient use of resources, but does not shift the PPF itself.

How Will a Reduction in the National Unemployment Rate Affect