A devastating earthquake destroys 10 percent of the population in Vancouver. What is the result?

Question

Quizplus · Accepted Answer

The destruction caused by the earthquake will lead to a decrease in the availability of resources such as infrastructure, human capital, and labor. As a result, the production possibility curve will shift inward, indicating a reduction in the amount of goods and services that Vancouver can produce. This is because a smaller percentage of the population will be available to work and contribute to the economy, and there will be lower levels of investment in capital goods and infrastructure as resources are allocated to disaster relief and reconstruction efforts.

A Devastating Earthquake Destroys 10 Percent of the Population in Vancouver