Question

in exhibit 2-11, which of the following could have caused the production possibilities curve to shift from the one labeled b to the one labeled a?
a. a decrease in unemployment.
b. an advance in technology.
c. a major natural disaster.
d. an increase in resources.

Explanation:

A production possibilities curve (PPC) shifting inward (from B to A) means the economy's maximum potential output of both goods decreases.

• A decrease in unemployment moves the economy toward, not shifts, the PPC.
• Technological advances and increased resources shift the PPC outward.
• A major natural disaster destroys resources (e.g., factories, land), reducing the economy's productive capacity and shifting the PPC inward.

Answer:

c. A major natural disaster.