How will an increase in the level of human capital,ceteris paribus,affect an economy's production possibilities curve?
A)Shift the curve inward.
B)Result in a movement from inside the curve to a point on the curve.
C)Shift the curve outward.
D)Result in a movement along the curve.

Question

Quizplus · Accepted Answer

An increase in the level of human capital, ceteris paribus, means that the economy's workforce is better educated, trained, or skilled. This will lead to an increase in the economy's efficiency in producing goods and services, and thus a shift of the production possibilities curve outward. The economy will be able to produce more goods and services with the same amount of resources, indicating an increase in economic growth and development.

How Will an Increase in the Level of Human Capital,ceteris