A production possibilities frontier will shift outward FOR ALL OF THE FOLLOWING REASONS EXCEPT
A)a technological improvement.
B)an increase in the stock of capital.
C)an increase in the labour force.
D)an increase in opportunity cost.
E)an increase in human capital.

Question

Quizplus · Accepted Answer

An increase in opportunity cost would not shift the production possibilities frontier outward, as it represents a decrease in the efficiency of producing one good over another. All other options represent increases in productive capacity that would shift the frontier outward.

A Production Possibilities Frontier Will Shift Outward FOR ALL OF THE FOLLOWING