A production possibilities curve will shift inward

Question

Quizplus · Accepted Answer

When a war destroys the capital goods of a country, the country's ability to produce goods and services decreases, leading to a shift inward in the production possibilities curve. Therefore, option D is the correct answer. A decrease in the unemployment rate or expansion of resources may lead to an outward shift in the production possibilities curve, and inefficient production may cause a point to move along the curve but not shift the curve itself.

A Production Possibilities Curve Will Shift Inward