Which of the following would not shift the production possibilities frontier?

A) An increase in capital stock
B) A war that destroyed many buildings
C) A technological improvement that improved fuel efficiency in cars
D) A decrease in the size of the labor force
E) A change to a more inefficient production process

Question

Anthony Dottore · Accepted Answer

Final Answer : E, Explanation :  The production possibilities frontier (PPF) represents the maximum output combinations of goods or services an economy can achieve when all resources are fully and efficiently utilized. A change to a more inefficient production process would not shift the PPF but would likely result in the economy operating inside the PPF, indicating underutilization of resources. Choices A, B, C, and D all represent changes that would affect the economy's ability to produce goods and services, thereby shifting the PPF.

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