As a nation's average education level increases, the nation's level of productivity
A) Increases, and the production possibilities curve shifts to the right.
B) Decreases, and the nation's production possibilities curve shifts to the left.
C) Increases, and the nation moves to a new point on the same production possibilities curve.
D) Decreases, and the nation moves to a new point on the same production possibilities curve. Human and physical capital increase the productivity of a nation's workers.

Question

Quizplus · Accepted Answer

When a nation's average education level increases, the human capital of the workforce increases, which leads to higher productivity. This means that the nation can produce more goods and services within the same amount of resources. As a result, the production possibilities curve shifts to the right, indicating the potential for higher output levels.

As a Nation's Average Education Level Increases, the Nation's Level