A production possibilities frontier (PPF) shifts outward when:

• A. there is a decrease in the labor force
• B. resources become less productive
• C. the economy experiences technological advancements
• D. the opportunity cost of production increases

Answer: (C)

Verified step by step guidance

1. Understand what a Production Possibilities Frontier (PPF) represents: it shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.
2. Recognize that an outward shift of the PPF means the economy can produce more of both goods than before, indicating economic growth or an increase in productive capacity.
3. Analyze the given options: a decrease in the labor force reduces available resources, which would shift the PPF inward, not outward.
4. Consider that resources becoming less productive also reduce output potential, causing the PPF to shift inward.
5. Identify that technological advancements improve the efficiency of production, allowing more output from the same resources, which shifts the PPF outward, increasing the economy's production possibilities.