An increase in the labor force will bring about an outward shift in an economy's production possibilities curvE.

Question

Quizplus · Accepted Answer

This is true because with an increase in the labor force, there are more workers available to produce goods and services, leading to an increase in the economy's potential output. As a result, the production possibilities curve will shift outward, indicating an increase in the economy's productive capacity.

An Increase in the Labor Force Will Bring About an Outward