An inward shift in the Canadian economy's production possibility frontier could represent:
A) Canadian workers moving to the United States.
B) workers moving from Ontario to Alberta.
C) Canadian economic growth.
D) a movement from labour-intensive to capital-intensive industries in some provinces.

Question

Quizplus · Accepted Answer

An inward shift in the production possibility frontier indicates a reduction in an economy's capacity to produce goods and services. Canadian workers moving to the United States would reduce the labor force, thus decreasing production capacity.

An Inward Shift in the Canadian Economy's Production Possibility Frontier