Question

Which of the following would not cause an economy's production possibilities curve to shift to the right?

• A. The discovery of new superconductivity materials which makes manufacturing more efficient.
• B. A decrease in unemployment.
• C. Improvements in technology.
• D. Widespread application of irrigation to agricultural land.

Answer 1

Answer: (B)

A decrease in unemployment.

A decrease in unemployment will not result in growth of resources which would not cause an economy's production possibility curve to shift to the right.