Which of the following events will cause the production possibility frontier to shift outward (to the right)?
A) a natural disaster that causes widespread damage
B) a computer problem that affects all business that rely on computers
C) a wave of immigration caused by new, easier rules
D) a war that destroys the nation's infrastructure

Question

Quizplus · Accepted Answer

A wave of immigration caused by new, easier rules would increase the labor force which can shift the production possibility frontier outward. The other events listed in the options would decrease the available resources or damage existing resources, which would shift the production possibility frontier inward or to the left.

Which of the Following Events Will Cause the Production Possibility