In Figure 1.4, a shift of the production possibilities curve from PP1 to PP2 could be caused by
A) An increase in the unemployment rate.
B) Implementation of training programs that improve the skills of workers.
C) A flu epidemic that makes many workers sick.
D) Tougher pollution controls for the producers of plasma televisions and MP3 players.

Question

In Figure 1.4, a shift of the production possibilities curve from PP1 to PP2 could be caused by
A) An increase in the unemployment rate. 
B) Implementation of training programs that improve the skills of workers. 
C) A flu epidemic that makes many workers sick. 
D) Tougher pollution controls for the producers of plasma televisions and MP3 players.

Quizplus · Accepted Answer

An implementation of training programs that improve the skills of workers could increase productivity, allowing for a shift of the production possibilities curve outward from PP1 to PP2. The other choices listed do not directly relate to an increase in productivity or the production possibilities curve.