Refer to the information provided in Figure 17.1 below to answer the questions that follow. Figure 17.1
-Refer to Figure 17.1.Which of the following causes the ppf to shift from ppf2 to ppf1?
A)technological progress
B)a decrease in capital stock
C)an increase in the labor force
D)an increase in per capita income

Question

Refer to the information provided in Figure 17.1 below to answer the questions that follow.  Figure 17.1
-Refer to Figure 17.1.Which of the following causes the ppf to shift from ppf2 to ppf1?
A)technological progress 
B)a decrease in capital stock 
C)an increase in the labor force 
D)an increase in per capita income

Quizplus · Accepted Answer

A shift from ppf2 to ppf1 represents a decrease in the overall production capacity of the economy. This could be caused by a decrease in the capital stock (e.g. through depreciation or destruction of capital goods). Technological progress, an increase in the labor force, or an increase in per capita income would generally shift the ppf outward, representing an increase in production capacity.

Refer to the Information Provided in Figure 17