Suppose drought destroys many millions of acres of valuable Canadian farmland.The effect on the Canadian economy would be to move
A)its production possibilities boundary outward.
B)it beyond its production possibilities boundary.
C)it along its production possibilities boundary.
D)its production possibilities boundary inward.
E)None of the above.There would be no change in Canada's production possibilities boundary.

Question

Quizplus · Accepted Answer

Drought destroying many millions of acres of valuable Canadian farmland would decrease Canada's production capacity, leading to a decrease in its production possibilities boundary. Therefore, the best choice is D.

Suppose Drought Destroys Many Millions of Acres of Valuable Canadian