Other things equal, which of the following would shift an economy's production possibilities curve to the left?
A) the discovery of a low-cost means of generating and storing solar energy
B) the entrance of more women into the labor force
C) a law requiring mandatory retirement from the labor force at age 55
D) an increase in the proportion of total output that consists of capital or investment goods

Question

Quizplus · Accepted Answer

Mandatory retirement at age 55 would decrease the size of the labor force and potentially decrease the economy's output, leading to a leftward shift in the production possibilities curve. The other choices would not necessarily cause a shift to the left. A low-cost means of generating and storing solar energy could increase productivity and shift the curve to the right. The entrance of more women into the labor force could also potentially increase output and shift the curve to the right. An increase in the proportion of capital goods could lead to greater productivity and a possible shift to the right as well.

Other Things Equal, Which of the Following Would Shift an Economy's