Which one of the following would cause the production possibilities curve to move inwards?

Question

A. A reduction in the level of unemployment

B. A fall in the rate of investment

C. A rise in the price of one factor of production

D. An increase in the level of unemployment

Answer 1

C. A rise in the price of one factor of production

Price is exogenous factor for PPC while rate of Investment and unemployment just shifts production below potential level.