Asked by Mitchell Kramer on May 05, 2024
Verified
A production possibilities frontier can shift outward for all of the following reasons except:
A) a decrease in the size of the labor force.
B) an increase in the skills of the labor force.
C) an improvement in technology.
D) a larger work force.
E) a larger capital stock.
Labor Force
The total number of people, including both the employed and the unemployed, who are actively seeking and available for work.
Technological Improvement
Refers to advancements in technology that increase productivity and efficiency in the production process, enhancing the quality and capabilities of goods and services.
- Learn how transformations in resources, technology, and governmental policies can impact the Production Possibilities Frontier, signifying economic expansion or contraction.
- Understand that the outward expansion of the Production Possibility Frontier signifies economic growth and recognize the contributing factors to this advancement.
Verified Answer
KG
Karneeka GolashMay 11, 2024
Final Answer :
A
Explanation :
An outward shift in the production possibilities frontier requires an increase in productive resources, such as labor and capital, or an improvement in technology. Therefore, a decrease in the size of the labor force would not lead to an outward shift in the production possibilities frontier.
Learning Objectives
- Learn how transformations in resources, technology, and governmental policies can impact the Production Possibilities Frontier, signifying economic expansion or contraction.
- Understand that the outward expansion of the Production Possibility Frontier signifies economic growth and recognize the contributing factors to this advancement.
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