Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. A decrease in the labor force will cause a A) movement from Point A to Point B. B) movement from Point B to Point A. C) shift from ppf₂ to ppf_1. D) shift from ppf₂ to ppf_3.

Question

Quizplus · Accepted Answer

A decrease in the labor force will cause a shift in the production possibilities frontier (ppf) from ppf₂ to ppf_1.. This is because a decrease in the labor force means there are fewer resources available to produce goods and services, which limits the economy's production capacity and shifts the ppf inward.

Refer to the Information Provided in Figure 16