Other things equal, which of the following would shift an economy's production possibilities curve to the left?
A)the discovery of a low-cost means of generating and storing solar energy
B)the entrance of more women into the labour force
C)a law requiring mandatory retirement from the labour force at age 55
D)an increase in the proportion of total output which consists of capital or investment goods

Question

Quizplus · Accepted Answer

Mandatory retirement at age 55 would reduce the number of workers available in the labor force, thus decreasing the economy's potential output and shifting the production possibilities curve to the left. The other options would either increase the availability of resources (Option A), increase the number of workers in the labor force (Option B), or enhance the economy's ability to produce goods and services (Option D), thus shifting the production possibilities curve to the right.

Other Things Equal, Which of the Following Would Shift an Economy's