Increasing the number of laborers in an economy generally causes increase in the production possibilities curve.
Explanation:
The productions curve shows the relationship between the productions of any two categories of goods. A production possibility curve (PPC) helps in measuring the maximum output of two goods using a fixed amount of input in specific period of time. Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other. The curve measures the trade-off between producing one good versus another.
Generally PPC can be used to observe the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.
