An inward shift in the entire production possibilities frontier
A)represents economic growth.
B)means that the economy can produce more of both goods.
C)occurs if there is an increase in the capital stock.
D)takes place if there is an expansion in the labor force.
E)means that previous levels of production are now unobtainable.

Question

Quizplus · Accepted Answer

An inward shift in the production possibilities frontier means that the economy can produce less of both goods. This can happen due to various reasons, such as a decrease in the labor force, a decrease in the capital stock, or a decrease in technology. It represents a decrease in economic growth and a decrease in the overall potential output of the economy.

An Inward Shift in the Entire Production Possibilities Frontier