Refer to the information provided in Figure 31.1 below to answer the question(s) that follow. Figure 31.1 -Refer to Figure 31.1. Which of the following causes the ppf to shift from ppf₂ to ppf₁? A) technological progress B) a decrease in capital stock C) an increase in the labor force D) an increase in per capita income

Question

Quizplus · Accepted Answer

A decrease in capital stock would cause the PPF to shift inward, resulting in a reduction in the maximum potential output of both goods (moving from point B12 to point B11 on the PPF). Technological progress, an increase in the labor force, and an increase in per capita income would all cause the PPF to shift outward, resulting in an increase in maximum potential output of both goods.

Refer to the Information Provided in Figure 31