What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?
a. The entire frontier would shift outward.
b. The upper part of the frontier would shift outward while the lower part would shift inward.
c. Nothing, there would be no movement of the frontier.
d. The entire frontier would shift inward.
e. The lower part of the curve would shift outward while the upper part would shift inward.
A
Economics
You might also like to view...
How does the new growth theory explain economic growth?
What will be an ideal response?
Economics
A car owner who has agreed to sell his old car to a buyer at a contracted price will be unable to accept the price offered by other prospective buyers due to the _____ constraint
a. financial b. informational c. societal d. contractual
Economics