If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum output combinations of goods or services an economy can achieve using its resources efficiently. Removing productive farmland limits the resources available for agricultural production, thus reducing the economy's capacity to produce, which is represented by an inward shift of the PPF.

If New Government Regulations Designed to Protect Wetlands Remove Very