Question 18 Which of the following would shift the production possibilities curve inward? an increase in the production of capital goods technological advancements a decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time an increase in the number of hours factories are in production use
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Step 1: The production possibilities curve (PPC) shows the maximum combinations of two goods that can be produced with the available resources and technology. Show more…
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This graph contains three per-worker production functions: pwpf1, pwpf2, and pwpf3. The x-axis is labeled “Capital per hour worked, K/L” and the y-axis is labeled “Real GDP per hour worked, Y/L.” All three per-worker production functions begin at the origin where the x- and y-axes meet. All three per-worker production functions have the same curve, where they start out steep and plateau as they move to the right. Pwpf1 plateaus lower than pwpf2, and pwpf2 plateaus lower than pwpf3. There are 4 points, A-D, that are labeled on these per-worker production functions. Point A is on pwpf2. A vertical dashed line run from Point A to the x-axis, where the label (K/L)1 is marked. Points B, C, and D are on pwpf1, pwpf2, and pwpf3, respectively, and all three line up vertically with one another. A vertical dashed line runs through Points B, C, and D and goes down to the x-axis, where it’s labeled (K/L)2. Points A and B line up horizontally with one another. A horizontal dashed line runs through Points A and B over to the y-axis; this line is labeled (Y/L)1. A second horizontal dashed line runs from Point C over to the y-axis and is labeled (Y/L)2. A third horizontal dashed line runs from Point D over to the y-axis and is labeled (Y/L)3. Holding all else constant, a movement from A to C can be explained by: Group of answer choices An increase in capital A negative technological change An increase in labor A positive technological change
Crystal W.
Which of the following will NOT shift a country's production possibilities frontier outward? A. An increase in the capital stock. B. An increase in the labor force. C. An advance in technology. D. A reduction in unemployment.
Prabhat T.
Which of the following events would cause an outward expansion of the production possibilities frontier? Trading off the production of one good for more production of the other good. A fall in the slope of the production possibilities frontier. A fall in the productivity of the production process. Investing in capital.
Aparna S.
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