Asked by Jonathan Enriquez on Jun 28, 2024
Verified
The production possibility frontier will NOT shift outward due to an:
A) increase in the unemployment rate.
B) increase in the labor force.
C) improvement in technology.
D) increase in worker productivity.
Unemployment Rate
The percentage of the labor force that is jobless and actively looking for employment.
Worker Productivity
The amount of goods and services produced per hour worked by an employee.
- Evaluate the reasons behind movements in the production possibility frontier and the implications of these changes.
Verified Answer
PT
Phuong Thao HoangJun 29, 2024
Final Answer :
A
Explanation :
An increase in the unemployment rate means there are fewer workers available, which results in a decrease in the production capacity of the economy. Therefore, the production possibility frontier will not shift outward.
Learning Objectives
- Evaluate the reasons behind movements in the production possibility frontier and the implications of these changes.
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