The graph above shows the production possibilities curve for an economy producing two goods, X and Y. All of the following may allow the economy to produce combination D in the future, except?
A) Lower unemployment
B) Increasing labor supply
C) Economic growth
D) Technological advances

Question

The graph above shows the production possibilities curve for an economy producing two goods, X and Y. All of the following may allow the economy to produce combination D in the future, except?
A) Lower unemployment 
B) Increasing labor supply 
C) Economic growth 
D) Technological advances

Quizplus · Accepted Answer

Lower unemployment would not directly affect the ability of the economy to produce combination D. It may indirectly increase production if it leads to more efficient use of resources, but it is not a direct factor in the production possibilities frontier. In contrast, increasing labor supply, economic growth, and technological advances are all factors that could increase the economy's potential to produce combination D.

The Graph Above Shows the Production Possibilities Curve for an Economy