A production possibilities frontier can shift inward if there is:
A)an increase in the unemployment rate.
B)a stable political environment.
C)an improvement in technology.
D)larger work force.
E)a larger capital stock.

Question

Quizplus · Accepted Answer

An increase in the unemployment rate means that there are fewer people available to work, which will result in a decrease in production capacity and a shift inward of the production possibilities frontier.

A Production Possibilities Frontier Can Shift Inward If There Is