A nation's production possibilities curve might shift to the left (inward) as a result of
A) technological advance.
B) increases in the size of the labor force.
C) the depletion of its soil fertility due to overplanting and overgrazing.
D) investing in more capital goods.

Question

Quizplus · Accepted Answer

The depletion of a nation's soil fertility due to overplanting and overgrazing would limit its ability to produce agricultural goods and natural resources, causing a shift in the production possibilities curve inward. Choices A, B, and D would all lead to an outward shift in the curve, representing an increase in a nation's potential production.

A Nation's Production Possibilities Curve Might Shift to the Left