Suppose fire destroy many millions of hectares of valuable Canadian forest. The effect on the Canadian economy would be best illustrated by _ the production possibilities boundary.
A)a shift outward of
B)a movement to a point beyond
C)a movement inside
D)an inward shift of
E)a movement along

Question

Quizplus · Accepted Answer

The destruction of valuable Canadian forest by fire would lead to a reduction in the available resources for production, resulting in a decrease of the maximum potential output of the Canadian economy. This would cause an inward shift of the production possibilities boundary.

Suppose Fire Destroy Many Millions of Hectares of Valuable Canadian