The production possibilities frontier of an economy can shift inward if there is _____

Question

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A natural disaster, such as a hurricane, earthquake or flood, can damage the infrastructure of an economy, reduce the availability of resources and cause a decline in production capacity. Consequently, the production possibilities frontier of the economy, which represents the maximum combination of goods and services that it can produce with its resources, will shift inward to a lower level. This means that the economy will have to forgo some of its previous possibilities and become less productive.

The Production Possibilities Frontier of an Economy Can Shift Inward