Question

Which of the following actions will shift the production possibilities curve to the right?

1) Increase in technology
2) Decrease in unemployment
3) Increase in government regulations
4) Decrease in population

Answer 1

An increased number of workers will cause the supply curve to shift to the right due to factors such as immigration, increasing population, aging population, and changing demographics.

Step-by-step explanation:

An increased number of workers will cause the supply curve to shift to the right. An increased number of workers can be due to several factors, such as immigration, increasing population, an aging population, and changing demographics. Policies that encourage immigration will increase the supply of labor, and vice versa. Population grows when birth rates exceed death rates. This eventually increases supply of labor when the former reach working age. Another example of changing demographics is more women working outside of the home, which increases the supply of labor.