A virulent disease spreads throughout the population of an economy, causing death and disability. How can this be portrayed on the production possibilities curve?

Question

Quizplus · Accepted Answer

A virulent disease causing death and disability would result in a lower level of production capacity as the workforce is affected, which would be represented by an inward shift of the production possibilities curve. The economy would no longer be able to produce at its previous maximum potential.

A Virulent Disease Spreads Throughout the Population of an Economy