Question

in europe during the 14th century, the bubonic plague killed 24 million people or close to 37 percent of the population. how would this affect the production possibilities curves for the countries of europe at that time?
a. the production possibilities curves for these countries would have shifted outward.
b. the production possibilities curves for these countries would have shifted inward.
c. this would have been illustrated by a movement along the production possibilities curves for these countries, but it would not have shifted them.
d. the production possibilities curves for these countries would have been unaffected.

Explanation:

A production possibilities curve (PPC) shifts when there is a change in the available resources or technology. The Bubonic Plague eliminated a large share of Europe's labor force, which is a critical production resource. A reduction in available resources decreases the maximum potential output of all goods, causing the PPC to shift inward. A movement along the curve only occurs when reallocating resources between goods, not when the total resource pool shrinks.

Answer:

b. The production possibilities curves for these countries would have shifted inward.