Which of the following would cause an outward shift of the production possibilities frontier?

Question

Quizplus · Accepted Answer

An improvement in technology would allow for more efficient production, allowing for the production of more goods and/or services, causing an outward shift in the production possibilities frontier. A reduction in inefficiency (A) would only result in a movement along the current production possibilities frontier, as the economy becomes more efficient at producing the same set of goods and services. A reduction in the size of the labor force (B) would lead to a decrease in production, resulting in a inward shift of the production possibilities frontier. A change in the combination of goods produced (D) would also result in a movement along the production possibilities frontier, not a shift. An increase in opportunity costs (E) may limit the production of certain goods, leading to a leftward shift of the production possibilities frontier.

Which of the Following Would Cause an Outward Shift of the Production