Question

Determine how each of the following would affect the U.S. Production Possibilities Frontier (PPF).

Scenario	Shift Outward	Shift Inward	Movement to a Point Closer to the Frontier	Movement to a Point Inside the Frontier
A law that requires individuals to enter lines of work for which they are not suited
A decrease in the unemployment rate
An increase in the number of illegal immigrants
A war that takes place on U.S. soil
The discovery of a new oil field

Answer 1

-A law that requires..... - movement to a point inside the frontier

Law that requires individuals to jobs for which they are not suites will lead to inefficient use of resources.

- A decrease in unemployment rate- movement to a point closer to the frontier

Decrease in unemployment rate means more efficient utilisation of resources.

- An increase in the number of illegal immigrants- shift outward

This will cause the increase the number of cheap labor which can produce more goods in the economy.

- A war that.... - shift inward

War destroys capital which means less can be produced

- the discovery of.....- shift outward

New oil field means cheaper oil which will increase the production of goods in the economy