The PPF shifts if the resources available to the nation change. This could occur due to natural disasters, technological advancements, changes in population, or policies such as taxes or subsidies. The other options listed may impact the production and consumption of goods and services, but they do not directly cause a shift in the PPF.

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The PPF Shifts If

Question 256

Multiple Choice

The PPF shifts if

A) people decide they want more of one good and less of another.
B) the prices of the goods and services produced rise.
C) the resources available to the nation change.
D) the unemployment rate falls.

Correct Answer: