Consider Canada's production possibilities boundary.During the nineteenth and early twentieth centuries,millions of people immigrated to western Canada.The effect on the Canadian economy was to
A)move it to a point beyond its new production possibilities boundary.
B)move it inside its new production possibilities boundary.
C)shift its production possibilities boundary inward.
D)shift its production possibilities boundary outward.
E)move it along an unchanged production possibilities boundary.

Question

Quizplus · Accepted Answer

The influx of millions of people into western Canada would have increased the labor force and potentially also the amount of available resources (such as land for agriculture). This would have allowed for an increase in production, shifting the production possibilities boundary outward.

Consider Canada's Production Possibilities Boundary