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. A decrease in the labor force will cause a A) movement from Point A to Point B. B) movement from Point B to Point A. C) shift from ppf₂ to ppf_1. D) shift from ppf₂ to ppf_3.

Question

Quizplus · Accepted Answer

A decrease in the labor force will cause a shift inward on the production possibilities frontier (ppf) from ppf₂ to ppf_1., indicating a decrease in the economy's capacity to produce goods and services. This shift represents a decrease in the maximum output the economy can produce given its resources and technology. Therefore, the correct choice is C.

Refer to the Information Provided in Figure 31