The production possibility frontier will shift outward for all of the following reasons EXCEPT:
A)an increase in the unemployment rate.
B)an increase in the labor force.
C)an improvement in technology.
D)an increase in worker productivity.

Question

Quizplus · Accepted Answer

An increase in the unemployment rate would lead to a decrease in the production possibility frontier as there would be fewer workers available to produce goods and services. The other options would all lead to an increase in the production possibility frontier.

The Production Possibility Frontier Will Shift Outward for All of the Following