Ceteris paribus,which of the following will most likely cause an inward shift of the production possibilities curve?
A) A decrease in the size of the labor force.
B) An increase in population.
C) An increase in knowledge.
D) An improvement in technology.

Question

Quizplus · Accepted Answer

When the size of the labor force decreases, the economy's ability to produce goods and services decreases, leading to an inward shift of the production possibilities curve. This is because there are fewer resources available to produce goods and services. The other options may lead to an outward shift of the production possibilities curve as they increase the economy's ability to produce more goods and services.

Ceteris Paribus,which of the Following Will Most Likely Cause an Inward