Which of the following is not true about production possibilities frontiers?
A) moving from one point to another on a PPF incurs a tradeoff
B) economic growth is shown by shifting the PPF outward
C) unemployment of resources is shown by shifting the PPF inward
D) a PPF can shift inward or outward

Question

Quizplus · Accepted Answer

Unemployment of resources is not shown by shifting the PPF inward. An inward shift of the PPF would indicate a decrease in the economy's production capacity, which could be caused by factors like a natural disaster, a decrease in the population, or a decrease in available resources. Unemployment of resources would be shown by a point inside the PPF, indicating that resources are not being fully utilized.

Which of the Following Is Not True About Production Possibilities