Multiple Choice
Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. Which of the following statements is now true?
A) Country B's production possibilities frontier has rotated outward for only the production of iPhones.
B) Country B's production possibilities frontier has shifted straight outward.
C) Country B's production possibilities frontier has shifted straight inward.
D) Country B's production possibilities are now more limited due to overcrowding from the extra workers.
Correct Answer:
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