Which one of the following would likely shift a production possibilities frontier inward?
A)technological change.
B)a drought.
C)a decrease in the price of natural resources.
D)all of the above
E)None of the above, because production possibilities frontiers do not shift inward.

Question

Quizplus · Accepted Answer

A drought would decrease the amount of resources available for production, thus limiting the production possibilities and shifting the PPF inward. Technological change and a decrease in the price of natural resources would have the opposite effect and shift the PPF outward, allowing for greater production possibilities. However, the question specifically asks for a shift inward, ruling out choices A and C. Option D is incorrect because it includes all three options, which contradicts the question's premise. Option E is also incorrect because PPFs can shift inward, as explained in choice B.

Which One of the Following Would Likely Shift a Production