An increase in the labor force would be reflected in a society's production possibilities frontier (PPF)by an
A) increase in opportunity cost.
B) inward shift of the PPF.
C) outward shift of the PPF.
D) outward rotation along the x axis.
E) outward rotation along the y axis.

Question

Quizplus · Accepted Answer

An increase in the labor force means that there are more workers available to produce goods and services. This will result in an outward shift of the PPF, indicating an increase in the economy's production capacity. The PPF represents the maximum amount of goods and services that an economy can produce with its existing resources, so an increase in the labor force would improve the economy's ability to produce goods and services.

An Increase in the Labor Force Would Be Reflected in a Society's