Question

If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will 1 point A. shift leftward. B. Shift rightward. C. Not shift because the society moves from one point on the frontier to a point inside the frontier. D. Not shift because the society moves from a point inside the frontier to a point on the frontier. E. Not shift because the society moves from a point on the frontier to a point outside the frontier.

Answer 1

Answer:

D

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift  

1. changes in technology.  

2. changes in available resources.  

3. changes in the labour force.

Due to the significant unemployment , production would occur at a point inside the curve. When the firm moves to full employment, production would take place on the curve