Which of the following would most likely shift the production possibilities curve inward? A) technological progress B) a decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time C) an increase in the number of hours factories are in use D) an increase in the production of capital goods

The production possibilities curve (PPC) represents the maximum possible production levels of two goods or services that an economy can obtain when all resources are fully and efficiently used. An inward shift of the PPC indicates a decrease in the economy's productive capacity—a reduction in the resources or technological ability to produce goods. Let’s analyze the options: A) Technological progress would make production more efficient, allowing the economy to produce more goods. This shifts the PPC outward rather than inward. B) A decrease in the average number of hours worked per week means that less labor is available for production. Since fewer hours of labor directly reduce the economy's overall productive capacity, the PPC would shift inward. C) An increase in the number of hours factories are in use implies utilizing the available resources more intensively, which could allow for greater production. This might help the economy operate closer to its potential or even produce more, rather than reducing capacity. D) An increase in the production of capital goods generally means more resources are being devoted to investment. While this might temporarily reduce output of consumption goods, it is an investment in future productive capacity, potentially shifting the PPC outward over time. Thus, the best answer is: B) a decrease in the average number of hours worked per week as the labor force chooses to enjoy more leisure time.