When the number of labor force increases, economy’s possibilities to produce goods and services will increase too. B. if production occurs outside the production possibilities frontier. d would simply change the axes. The production possibility frontier will shift outward for all of the following from TEST BANK 132 at DeVry University, New York Alternatively, Julio could decide to work more. For example: Steel was being used to produce the product, but now the supply of steel in the economy has reduced which has caused a reduction in overall production. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. These tradeoffs are present both in individual choice and in the production decisions of entire economies.. (z) a resource-saving advance in production technology A. C) faster the production possibilities frontier will shift inward. Answer: B Diff: 2 Type: C 66) An improvement in technology will cause the A) production possibility frontier to shift outward. . (y) an increase in immigration of skilled workers from neighboring economies. Ways of causing an outward shift of a country’s production possibility frontier: . As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. An increase in the production of capital goods A) must increase the current production of consumer goods. b. the entire PPF to shift inward. 0 0. But improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. An outward shift of the production possibility frontier may be caused by: A. a production possibility frontier might shift inwards because the labour force shrinks,the supply of raw materials is depletes or a natural disaster decreases the stock of physical capital. C) movement from a point inside the frontier to a point on it. D. if technology declines. One of the central principles of economics is that everyone faces tradeoffs because resources are limited. A) tastes and preferences change B) the quantity of money in the economy grows C) prices rise D) human capital accumulates E) the political party in power changes. Which of the following events would cause a production possibilities frontier to shift outward? A. a reduction in inefficiency. Less government spending C. Better training of employees which resulted in increased productivity D. Productive inefficiency as a result of inadequate factory maintenance An increase in demand at lower market prices B. Hypothetically, the production possibilities curve would shift outward if everyone worked more hours and took less leisure time . Answer: NOT an upgrade of capital to the best available technology..... it possibly is a decrease in the unemployment rate... because with an increase in employment rate u have an increase in factors of production . 20) Consider a production possibilities frontier with corn production … The production possibility frontier (PPF) is determined by its slope, or rather, the opportunity cost. B) must decrease the future production of consumer goods. A production possibilities frontier with a bowed outward shape indicates an increase in opportunity costs as more and more of one good is produced. a. A left shift in the production possibility curve may be caused by a reduction in resources or inefficiency. Most relevant text … However, improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. One way the PPF can shift outwards is if there is an increase in the active labour supply. 13) Consider a country that has two industries. But improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. plant and machinery and new technology; Inward migration of younger, skilled workers; Discovery of new natural resources However, improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. An economy’s production possibilities frontier would shift outward as a result of (x) a decrease in the rate of unemployment as more workers became employed. A production possibility frontier (PPF) illustrates the combinations of output of two products that a country can supply using all of their available factor inputs in an efficient way. Don't use plagiarized sources. The-production possibilities frontier will shift outward a if? 1. economic inflation. The production possibilities frontier can shift outward if: all of the above are correct : there is an increase in technology : the government increases the amount of money in the economy : resources can be moved from the production of one good to another: How aqhomework.com works Part (b) of Figure 6.18 "Two Ways of Shifting the Production Possibilities Frontier Outward" shows what the production possibilities frontier would look like if Julio worked 10 hours per day instead of 8 hours. The production possibilities frontier shifts outward when _____. Which of the following would shift the production possibilities frontier outward? E) more bowed out will be the shape of the production possibilities frontier. The Production Possibilities frontier will shift outward if: A) production occurs outside of the production possibility fronter B) If resources are used to produce capital goods. The production possibilities frontier (PPF for short, also referred to as production possibilities curve) is a simple way to show these production tradeoffs graphically. *Response times vary by subject and question complexity. ... a. seems legit, but c is a better answer. Median response time is 34 minutes and may be longer for new subjects. D) closer it will come to having a comparative advantage in the production of all goods. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. The new innovations that create technological advancements such as new machines and industrial assembly lines increase the rate of production, thus shifting the PPF outward. ... B mean the production is inside the curve. (x), (y) and (z) B. Two primary changes can cause the frontier to shift: a change in productive resources and technological change. B) production possibility frontier to shift inward. An outward shift of the production possibilities curve represents. Question: 2.Which Of The Following Would Not Shift The Production Possibilities Frontier Outward? Question 9 A shift outward of the production possibilities frontier line indicates a. the producer is less efficient and incurring a reduction in economic wealth. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. Source(s): Finished semester of AP macro economics. However, if we restrict our C) shifts the production possibilities frontier inward in the future. Investment in capital i.e. As it does, the production possibilities frontier for a society will tend to shift outward and society will be able to afford more of all goods. the entire production possibilities frontier (PPF) to shift outward. The shift from a recession toward the frontier is sometimes called an economic expansion. (x) and (y), only C. (x) […] ... Use these production possibilities frontier (PPF) curves, which compare the ancient production of agricultural products to art and literature, to answer the next four questions. A production possibilities frontier is bowed outward when the estimated worth of tradeoff between two products are being manufactured depending on how much of each item is being made. So far, we've talked about Econ Isle's possibilities up to its frontier, but the frontier line itself can shift. So production possibilities curve shift outward. E. if resources are used to produce capital goods. Thus, a society must choose between tradeoffs in the present. If we were to construct a production possibilities curve for leisure versus other goods, this would be shown as simply a movement along the curve. There are also other factors such as increased labor participation and increases in resources that can shift the PPF outward. C. if resources are not used in production. b would move it left. List four ways that the PPF can be shifted outward. D) movement toward the origin. We have assumed that the amount of time that Julio works is fixed at 8 hours. D) shifts the production possibilities frontier outward in the future. The production possibilities frontier will shift outward A. if resources are used to produce consumption goods. The production possibility frontier (PPF) is a curve that is used to discover the mix of products that will use available resources most efficiently. [Answer] The PPF will shift outward for which reason? An increase in the capital stock and advance in technology, both cause production possibilities increase and make the production possibilities curve shift outward. - Subject Economics - 00735026 B) faster the production possibilities frontier will shift outward. However, improvements in productive efficiency take time to discover and implement, and economic growth happens only gradually. b. e would shift left. . 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