Refer to the information provided in Figure 2.6 below to answer the questions that follow. Figure 2.6 -Refer to Figure 2.6.Which of the following will NOT cause the production possibility frontier to shift from ppf¹ to ppf²? A)the discovery of previously unknown oil fields B)an improvement in technology C)an increase in the stock of capital D)a decrease in the unemployment rate

Question

Quizplus · Accepted Answer

A decrease in the unemployment rate will not directly cause a shift in the production possibility frontier (PPF), as it does not affect either the availability of resources or technology. The PPF represents the maximum output that can be produced with the given resources and technology, so only changes in these factors, such as the discovery of new resources or an improvement in technology, can shift the PPF outward. An increase in the stock of capital would also shift the PPF outward, as this would increase the availability of resources for production.

Refer to the Information Provided in Figure 2