-Refer to Exhibit 2-2.If PPF₂ is the relevant production possibilities frontier,a significant loss of the quantity of resources available could A) move this society from point D to point G on PPF₂ B) shift this society to PPF₁ C) shift this society to PPF₃ D) not affect this society.

Question

Quizplus · Accepted Answer

A significant loss of the quantity of resources available would shift the production possibilities frontier inward, indicating that the society can produce less of both goods than before. This is represented by a shift to a new frontier with lower production possibilities, such as PPF₁.