PPC outward shift from productivity gains

Steps:

• PPC shows maximum output combinations with fixed resources; point X is attainable, Y is beyond current curve.
• Reaching Y requires outward PPC shift via resource efficiency or quantity increase.
• Labor market changes affect PPC by altering workforce productivity or size.
• Option A boosts efficiency of existing labor, enabling higher output for same inputs.

Why A is correct:

• Higher productivity increases total factor productivity, expanding production capacity and shifting PPC outward per economic growth theory.

Why the others are wrong:

• B: Hiring unemployed moves from inside to on the PPC, not outward.
• C: Emigration shrinks labor supply, shifting PPC inward.
• D: Earlier retirement reduces labor supply, shifting PPC inward.

Final answer: A