Use the following figure to answer questions: Figure 1.4 1
-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

Use the following figure to answer questions: Figure 1.4 1
-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

A shift of the production possibilities curve from PP1 to PP2 indicates an increase in the economy's productive capacity, which can be caused by improvements in technology or an increase in the quality or quantity of inputs. Implementation of training programs that improve the skills of workers can increase the productivity of labor, leading to a shift in the production possibilities curve to the right from PP1 to PP2. The other options have no direct impact on the economy's productive capacity and would not cause a shift of the production possibilities curve.

Use the Following Figure to Answer Questions: Figure 1