An increase in population shifts the production possibility frontier inwards over time.

Question

Quizplus · Accepted Answer

An increase in population does not necessarily lead to a shift in the production possibility frontier (PPF) inwards. If the increase in population is accompanied by an increase in resources, technological advancements or improvements in productivity, then the PPF may actually shift outwards. However, if the increase in population is not accompanied by any of these, then it may lead to a movement along the PPF, causing a reduction in resources per capita and a decrease in the total output of the economy.

An Increase in Population Shifts the Production Possibility Frontier Inwards