A production possibilities frontier can shift outward for all of the following reasons except:

A) a decrease in the size of the labor force.
B) an increase in the skills of the labor force.
C) an improvement in technology.
D) a larger work force.
E) a larger capital stock.

Learning Objectives

• Learn how transformations in resources, technology, and governmental policies can impact the Production Possibilities Frontier, signifying economic expansion or contraction.
• Understand that the outward expansion of the Production Possibility Frontier signifies economic growth and recognize the contributing factors to this advancement.