The introduction of compulsory retirement for all workers at age 60 would cause the production possibilities curve to
A) become steeper.
B) shift away from the origin.
C) become flatter.
D) shift towards the origin.
E) change in an unpredictable way.

Question

Quizplus · Accepted Answer

Compulsory retirement at age 60 would reduce the labor force, leading to a decrease in the economy's productive capacity, thus shifting the production possibilities curve towards the origin.

The Introduction of Compulsory Retirement for All Workers at Age