All Other Things Unchanged, Which of the Following Events Leads

question 129

Multiple Choice

All other things unchanged, which of the following events leads to a shift further outward in the country's production possibility curve?

• A) Its labor force participation rate decreases by 5% per year compared to 3% per year.
• B) Its saving rate falls from 8% to 1% per year.
• C) Government expenditures on basic research increases by 10% per year.
• D) The number of students completing college education falls.