Question

A production possibilities frontier can shift outward for all of the following reasons except:

A. a larger work force.
B. an improvement in technology.
C. an increase in the skills of the labor force.
D. a decrease in the size of the labor force.

Answer 1

A production possibilities frontier (PPF) represents the maximum combination of goods and services that an economy can produce within a given set of resources and technology. The PPF can shift outward due to factors such as a larger work force, an improvement in technology, and an increase in the skills of the labor force.

Step-by-step explanation:

A production possibilities frontier (PPF) represents the maximum combination of goods and services that an economy can produce within a given set of resources and technology.

The PPF can shift outward due to factors such as a larger work force, an improvement in technology, and an increase in the skills of the labor force.

These factors enable the economy to produce more goods and services and expand its production possibilities.

However, a decrease in the size of the labor force would not cause the PPF to shift outward.

With fewer workers available, the economy would have less capacity to produce goods and services, resulting in a contraction of the production possibilities.