Figure 2-4

Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.
A)W to V
B)X to W
C)W to Z
D)Y to W

Question

Figure 2-4
  
Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4.A movement from ________ could occur because of an influx of immigrant labor.
A)W to V 
B)X to W 
C)W to Z 
D)Y to W

Quizplus · Accepted Answer

A movement from W to Z could occur because an influx of immigrant labor would increase the total amount of labor available in the economy, allowing the country to produce more of both goods represented on the production possibilities frontier. This would shift the production possibilities frontier outward, allowing for more output of both goods. Movements from V to W or Y to W would not be possible due to the fixed resources represented by the production possibilities frontier. A movement from X to W would imply that the economy is becoming less efficient in producing one of the goods, which is not related to the influx of immigrant labor.

Figure 2-4 Figure 2-4 Shows Various Points on Three Different Production Possibilities