a. a reduction in business investment causes unemployment to increase. b. an economy uses all of its inputs…

a. a reduction in business investment causes unemployment to increase. b. an economy uses all of its inputs efficiently but changes the ratio of the goods produced. c. there is a new technological breakthrough in the production of energy - efficient airplanes. d. an economy experiences an influx of immigrants seeking jobs. 15. which factor is most likely to shift an entire ppf outward? a. a technology improvement in one key industry b. a general increase in educational attainment c. a general increase in the price of inputs d. a natural disaster that disrupts production 16. which would not be considered one of the primary factors of production? a. financial securities b. land c. entrepreneurial ability d. capital

a. a reduction in business investment causes unemployment to increase. b. an economy uses all of its inputs efficiently but changes the ratio of the goods produced. c. there is a new technological breakthrough in the production of energy - efficient airplanes. d. an economy experiences an influx of immigrants seeking jobs. 15. which factor is most likely to shift an entire ppf outward? a. a technology improvement in one key industry b. a general increase in educational attainment c. a general increase in the price of inputs d. a natural disaster that disrupts production 16. which would not be considered one of the primary factors of production? a. financial securities b. land c. entrepreneurial ability d. capital

Answer

Brief Explanations:

  1. A general increase in educational attainment improves the quality of the labor - force, which can increase the overall productive capacity of an economy and shift the entire Production - Possibility Frontier (PPF) outward. A technology improvement in one key industry may only shift part of the PPF, an increase in input prices reduces productive capacity, and a natural disaster decreases resources and productive capacity.
  2. The primary factors of production are land, labor, capital, and entrepreneurial ability. Financial securities are not a primary factor of production but a financial instrument.

Answer:

  1. B. a general increase in educational attainment
  2. A. financial securities