Through war,many of the factories in country 1 are destroyed and many of its people are killed.As a result,the country's
A) production possibilities frontier (PPF)after the war has probably shifted to the right compared to its PPF prior to the war.
B) PPF after the war has probably shifted to the left compared to its PPF prior to the war.
C) PPF after the war is probably the same PPF as before the war.
D) ability to produce goods and services has increased.
E) b and d

Question

Quizplus · Accepted Answer

War and destruction of factories and loss of population are likely to reduce the available resources and capital stock of a country, which would result in a decrease in its productive capacity. Therefore, the PPF after the war would probably shift to the left compared to its PPF before the war. Option A is incorrect because the PPF should shift to the left, not right. Option C is not likely as war is likely to have disrupted economic activities and reduced production. Option D is incorrect because the ability to produce goods and services would have decreased due to the war. Option E is incorrect because only option B is the correct choice.

Through War,many of the Factories in Country 1 Are Destroyed