An increase in the labor force can serve to push the production-possibility frontier outward from the origin regardless of its shape.

Question

Quizplus · Accepted Answer

An increase in the labor force can lead to higher productivity and the ability to produce more goods and services, pushing the production-possibility frontier outward from the origin. This is true regardless of the shape of the frontier, as long as technology and resources remain constant.

An Increase in the Labor Force Can Serve to Push