econ QUESTION 6 5 po Which of the following would cause the boundary of a Produc

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econ

QUESTION 6 5 po Which of the following would cause the boundary of a Production Possibility Frontier to shit outward? (Choose all that apply.) an increase in the supply of capital goods an improvement in the health and skill of the labor force technological innovation employing more of the existing labor force 5 points QUESTION 7 The graph below represents Joe's Production Possibility Frontier, Currently he is producing 4 smoothies and 10 salads per hour, at point A on the boundary of his PPF Joe's PPF 35

Explanation / Answer

Production possibility Frontier is drawn for given amount of resources and given status of technology. Improvement in technology and increase in the amount of resources will shift the production possibility frontier outwards. Technological innovation, and improvement in the health and skill of labour force is likely to shift the PPC outwards. Increase in the supply of capital goods will not increase the amount of resources. Similarly if more employees are transferred from the group of unemployed pool to employed pool, the labour force will not change and therefore there will be no change in amount of resources and the production possibilities.
Select technological innovation and improvement in the health status of workers.

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