An increase in the labor force would be reflected in a society's production possibilities frontier (PPF) by an a) inward shift of the PPF. b) increase in opportunity cost. Og increase in the maximum amount of goods achievable on the x-axis and no change on the y-axis. O d) outward shift of the PPF. O e) increase in the maximum amount of goods achievable on the y-axis and no change on the x-axis.

An increase in the labor force would be reflected in a society's production possibilities frontier (PPF) by an a) inward shift of the PPF. b) increase in opportunity cost. Og increase in the maximum amount of goods achievable on the x-axis and no change on the y-axis. O d) outward shift of the PPF. O e) increase in the maximum amount of goods achievable on the y-axis and no change on the x-axis.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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A production possibilities curve is drawn basedon which of the following assumptions?a. Resources are fixed and fully employed, andtechnology advances at the rate of growth ofthe economy overall.b. Resources such as nonrenewable resourceswill decline, but labor remains fullyemployed and technology is unchanged.c. Resources can vary; most resourcesexperience times of unemployment; andtechnology advances, particularly duringwartime.d. Resources such as labor and capital will growand are fully employed, and technology isunchanged.e. None of the answers correct.
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As a student, Jordyn spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Jordyn's production possibilities frontier is a straight line if Question 3 options: she faces no trade-off between writing term papers and completing homework assignments. she can switch between writing term papers and completing homework assignments at a constant rate. the rate at which she can switch between homework assignments and term papers depends on the number of homework assignments she is completing and on the number of term papers she is writing. she is required by her professors to spend half of her time on term papers and the other half of her time on homework assignments.
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