Asked by marta kebede on May 25, 2024
Verified
A production possibilities frontier can shift inward if there is:
A) an increase in the unemployment rate.
B) a stable political environment.
C) an improvement in technology.
D) larger work force.
E) a larger capital stock.
Shift Inward
A situation in economics where the supply curve moves towards the origin, indicating a decrease in supply at every price level.
Unemployment Rate
The number unemployed as a percentage of the labor force.
- Perceive how resource alterations, technology enhancements, and policy adjustments can move the Production Possibilities Frontier, indicating an economic boom or slump.
Verified Answer
TL
Tiyona LashayMay 31, 2024
Final Answer :
A
Explanation :
An increase in the unemployment rate means that there are fewer people available to work, which will result in a decrease in production capacity and a shift inward of the production possibilities frontier.
Learning Objectives
- Perceive how resource alterations, technology enhancements, and policy adjustments can move the Production Possibilities Frontier, indicating an economic boom or slump.
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