How will a decrease in technology from a natural disaster such as a hurricane,ceteris paribus,affect an economy's production possibilities curve?
A)Shift the curve inward.
B)Result in a movement from inside the curve to a point on the curve.
C)Shift the curve outward.
D)Result in a movement along the curve.

Question

Quizplus · Accepted Answer

A decrease in technology due to a natural disaster will result in a reduction of production capacity and efficiency, leading to a decrease in the overall output of an economy. As a result, the production possibilities curve will shift inward, indicating a decline in the economy's ability to produce goods and services.

How Will a Decrease in Technology from a Natural Disaster