Question

a disease such as ebola spreads throughout the population of an economy, causing death and disability. how are the effects of such as disease portrayed on the production possibilities curve?
as an inward shift of the curve
as an outward shift of the curve
as a movement along the curve to the southeast
as a movement from a point on the curve to the northeast

Explanation:

A production possibilities curve (PPC) represents the maximum output combinations of two goods an economy can produce with its available resources. A disease like Ebola reduces the economy's labor force (via death and disability), which shrinks the total available resources. This reduction in resources decreases the economy's maximum potential output, which is shown as an inward shift of the PPC. Movements along the curve only reflect reallocation of existing resources, not a change in total capacity, and an outward shift would mean increased resources/capacity, which is the opposite of the disease's effect.

Answer:

as an inward shift of the curve