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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.
(y) an increase in immigration of skilled workers from neighboring economies.
(z) a resource-saving advance in production technology
A. (x), (y) and (z) B. (x) and (y), only
C. (x) and (z), only D. (y) and (z), only
E. (y) only
In a certain economy, boats and cars are produced, and the economy currently operates inside its production possibilities frontier. Which of the following events would allow the economy to produce more boats and more cars, relative to the quantities of those goods that are being produced now?
A. Unemployed labor is put to work producing boats and cars.
B. The economy puts its idle capital to work producing boats and cars.
C. The economy experiences economic growth.
D. All of the above are correct.
E. A and B, only
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