An increase in the rate of economic growth curve could be caused by all of the following except
A)a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce.
B)a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods.
C)an increase in immigration that increases the country's labor force by 20 percent.
D)an increase in research and development spending for space technology that improves the quality of the nation's capital stock.

Question

Quizplus · Accepted Answer

An increase in the rate of economic growth is represented by an outward shift of the production possibilities curve, which can be caused by an increase in the quantity or quality of factors of production, such as labor, capital, and technology. The other options listed would all contribute to an increase in the quantity or quality of factors of production and would therefore cause the production possibilities curve to shift outward, increasing the rate of economic growth. However, producing more consumer goods and fewer capital goods would not lead to a sustained increase in economic growth because it would reduce the amount of investment in capital goods needed to support future growth. Therefore, option B is the exception.

An Increase in the Rate of Economic Growth Curve Could