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All of the following could immediately or eventually lead to an inward shift of a nation's production possibilities curve, except

A. emigration of skilled workers to other nations.
B. a decline in the birthrate.
C. an increase in the average skill level of all occupational groups.
D. depletion and reduced availability of major energy resources.

1 Answer

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Final answer:

The only factor that would not lead to an inward shift of a nation's production possibilities curve is C. an increase in the average skill level of all occupational groups, as it would enhance productivity and result in an outward shift of the PPC.

Step-by-step explanation:

The question deals with the factors that can lead to an inward shift of a nation's production possibilities curve (PPC), which is a graphical representation used in economics to show the maximum amount of two goods that can be produced with available resources and technology. Notably, an inward shift of the PPC implies a reduction in a nation's productive capacity.

All of the following factors can cause an inward shift of the PPC, except for C. an increase in the average skill level of all occupational groups. Specifically:

  • A. emigration of skilled workers to other nations can reduce the human capital and hence the productivity within a nation.
  • B. a decline in the birthrate can lead to a decreased labor force in the future, also potentially reducing productivity.
  • D. depletion and reduced availability of major energy resources can inhibit production and economic growth.

However, C. an increase in the average skill level of all occupational groups would typically lead to a higher level of productivity and an outward shift of the PPC, denoting an increase in a nation's ability to produce goods and services. Thus, it is the factor that would not lead to an inward shift of the PPC.

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