Which of the following will shift an economy's production possibilities curve inward?
A)An improvement in technology
B)An increase in the unemployment rate
C)A decrease in land,labor or capital
D)A decrease in the unemployment rate

Question

Quizplus · Accepted Answer

A decrease in land, labor, or capital will reduce an economy's ability to produce goods and services, thus shifting the production possibilities curve inward. An improvement in technology or a decrease in the unemployment rate would shift the curve outward, as the economy would be able to produce more with the same resources.

Which of the Following Will Shift an Economy's Production Possibilities