Which of the following factors will not lead to an outward shift of the production possibilities curve?

The reasoning behind the correct answer lies in understanding the concept of the production possibilities curve (PPC) and how it reflects an economy's capacity to produce goods and services. The PPC represents the maximum potential output of an economy, showcasing trade-offs between different goods.

When there is a reduction in unemployment, this generally means that more of the existing labor resources are being utilized effectively. While this can lead to increased production, it does not expand the economy’s overall capacity or potential output; it merely allows the economy to operate more efficiently within its current productive capabilities. Thus, while this is beneficial for maximizing output, it does not shift the PPC outward.

In contrast, the other options—an increase in resources, technological advancements, and improved education levels—do contribute to an outward shift of the PPC. Increasing resources adds to the economy's ability to produce more goods; technological advancements allow for more efficient production processes, enhancing output without necessarily increasing input; and improved education levels enhance labor productivity, allowing for greater production efficiency. Each of these factors enables the economy to produce more than it could previously, leading to a shift of the PPC outward.