Asked by Kirsten Landsverk on Jul 11, 2024
Verified
A production possibilities frontier will shift inward if there is an increase in the size of the labor force.
Production Possibilities Frontier
A curve that depicts all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), assuming all are used efficiently.
Labor Force
The total number of people employed and unemployed, actively seeking employment in an economy.
- Understand the shifts in production possibilities frontier due to changes in labor force size or technology.
Verified Answer
AZ
ashley zeppieriJul 12, 2024
Final Answer :
False
Explanation :
An increase in the size of the labor force would actually shift the production possibilities frontier outward, as there would be more resources available to produce goods and services. If the production possibilities frontier shifts inward, it is due to a decrease in resources or technological advancements.
Learning Objectives
- Understand the shifts in production possibilities frontier due to changes in labor force size or technology.
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