Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. 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

Quizplus · Accepted Answer

A shift from ppf₂ to ppf₁ indicates a decrease in production capacity, which can occur due to a decrease in capital stock. Technological progress or an increase in the labor force would lead to an outward shift of the production possibilities frontier (ppf), while an increase in per capita income would not directly affect the ppf.

Refer to the Information Provided in Figure 16