Question

What happens in a society when the production possibilities frontier moves to the left?

Select one:
a. The society is able to produce less.
b. The society is able to produce more.
c. The amount that a society can produce is not related to the production possibilities frontier. Incorrect
d. Economists do not yet know enough about production possibilities frontiers to answer this question.

Answer 1

answer is A.  When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities curve outward, or to the right. If the economy were to shrink, then, of course, the curve would shift to the left. When the curve shifts outward, or to the right, that means output is increasing. When the curve shifts inward, or to the left, that means output is decreasing