Which of the following would not shift the production possibilities curve in an inward direction?
A)a sharp increase in the unemployment rate
B)a decrease in the capital stock
C)land is contaminated due to a nuclear meltdown
D)a devastating war destroys both property and people

Question

Which of the following would not shift the production possibilities curve in an inward direction?
A)​a sharp increase in the unemployment rate
B)​a decrease in the capital stock
C)​land is contaminated due to a nuclear meltdown
D)​a devastating war destroys both property and people

Quizplus · Accepted Answer

A sharp increase in the unemployment rate does not shift the production possibilities curve inward; it results in a point inside the curve, indicating underutilization of resources, rather than a change in the economy's maximum productive capacity.

Which of the Following Would Not Shift the Production Possibilities