Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets 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 curve has rotated out for only production of iPods.
B) Country B's production possibilities curve has shifted straight out.
C) Country B's production possibilities curve has shifted straight in.
D) Country B's production possibilities are now more limited because of crowding from having more workers.

Question

Quizplus · Accepted Answer

With an increase in the population of workers, Country B's production possibilities curve would shift straight outwards, as more labor resources would be available for production. This expansion in the available resources would allow Country B to produce more of both iPods and tablets. Therefore, option B is the correct choice. Option A is incorrect because the curve would shift outwards for both types of production, not only for iPods. Option C is incorrect because the increase in labor resources would not lead to a decrease in production possibilities. Option D is incorrect because an increase in labor resources should lead to an increase in production possibilities, not a reduction.

Suppose That a Worker in Country a Can Make Either