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Hurricane Katrina Destroyed Much of New Orleans and Other Parts

Question 29

Multiple Choice

Hurricane Katrina destroyed much of New Orleans and other parts of the South. Which of the following statements is true? The hurricane:


A) caused the U.S. production possibilities frontier to shift inward.
B) caused production possibilities to increase, since much work was needed to rebuild the city.
C) caused the U.S. production possibilities frontier to bow inward.
D) moved production from a point on the frontier to a point inside the frontier.

Correct Answer:

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