Which of the following would not shift the production possibilities frontier?
A)An increase in capital stock
B)A war that destroyed many buildings
C)A technological improvement that improved fuel efficiency in cars
D)A decrease in the size of the labor force
E)A change to a more inefficient production process

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum output combinations of goods or services an economy can achieve when all resources are fully and efficiently utilized. A change to a more inefficient production process would not shift the PPF but would likely result in the economy operating inside the PPF, indicating underutilization of resources. Choices A, B, C, and D all represent changes that would affect the economy's ability to produce goods and services, thereby shifting the PPF.

Which of the Following Would Not Shift the Production Possibilities