Which of the following would shift a nation's production possibilities frontier outward?
A)developing solar power that is more efficient than all other methods of generating electricity.
B)an increase in demand for the nation's products
C)a decrease in the unemployment rate
D)a law requiring workers to retire at age 50

Question

Quizplus · Accepted Answer

Developing a more efficient method of generating electricity would allow the nation to produce more goods and services, thus increasing their production possibilities and shifting the frontier outward.

Answer: B
 An increase in demand for the nation's products would lead to an increase in production, allowing the nation to produce more goods and services, thus shifting the production possibilities frontier outward.

Answer: C and D 
 The unemployment rate and retirement age would not directly affect the production possibilities frontier.

Which of the Following Would Shift a Nation's Production Possibilities