If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will
A) shift leftward.
B) shift rightward.
C) not shift because the society moves from one point on the frontier to a point outside the frontier.
D) not shift because the society moves from a point inside the frontier to a point on the frontier.
E) not shift because the society moves from one point on the frontier to a point inside the frontier.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum output combinations that an economy can achieve when all resources are fully employed. Moving from significant unemployment to full employment means the society is utilizing previously idle resources, thus moving from a point inside the frontier (where not all resources are fully utilized) to a point on the frontier (where resources are fully utilized), without shifting the frontier itself.

If a Society Moves from a Period of Time with Significant