Improving the level of education of the labor force will:
A)move the economy from a point inside the production possibilities curve to a point on the production possibilities curve.
B)move the economy from a point on the production possibilities curve to a point inside the production possibilities curve.
C)shift the production possibilities curve outward.
D)shift the production possibilities curve inward.
E)make the production possibilities curve linear.

Question

Quizplus · Accepted Answer

By improving the level of education of the labor force, the economy becomes more efficient and productive, leading to an increase in the potential output. This results in a shift in the production possibilities curve outward, indicating an increase in the maximum output that can be produced by the economy.

Improving the Level of Education of the Labor Force Will