If Mexico was to realize an increase in its factors of production, its production possibilities frontier would shift inward toward the origin of the diagram.

Question

Quizplus · Accepted Answer

An increase in factors of production would cause the production possibilities frontier to shift outward, indicating the ability to produce more goods and services. A shift inward would indicate a decrease in factors of production and a reduction in the ability to produce goods and services.

If Mexico Was to Realize an Increase in Its Factors