An outward shift of a nation's production possibilities frontier can occur due to
A)a reduction in unemployment.
B)a natural disaster like a hurricane or bad earthquake.
C)a change in the amounts of one good desired.
D)an increase in the labour force.

Question

Quizplus · Accepted Answer

An increase in the labour force can lead to an outward shift in a nation's production possibilities frontier, as more workers mean that more goods and services can be produced. Options A and B do not directly relate to the production possibilities frontier, while C refers to a change in preferences rather than a change in the economy's ability to produce goods and services.

An Outward Shift of a Nation's Production Possibilities Frontier Can