The production possibilities curve can shift inward when
A) production increases.
B) employment increases.
C) the stock of productive capital rises.
D) a country experiences a natural disaster.

Question

Quizplus · Accepted Answer

The production possibilities curve can shift inward when a country experiences a natural disaster, such as an earthquake, hurricane, or drought, that destroys capital assets or disrupts production activities. This reduces the country's available resources and limits its capacity to produce goods and services, causing the production possibilities curve to shift inward.

The Production Possibilities Curve Can Shift Inward When