Figure 2.3

Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. Consider the following events:
A.an increase in the unemployment rate
B.a decrease in a nation's money supply
C.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?

Question

Figure 2.3
  
Figure 2.3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2.3. Consider the following events:
A.an increase in the unemployment rate
B.a decrease in a nation's money supply
C.a war that kills a significant portion of a nation's population
Which of the events listed above could cause a movement from Y to W?

Quizplus · Accepted Answer

A war that kills a significant portion of a nation's population could reduce the labor force and resources, leading to a decrease in production capacity, causing a movement from Y to W.

Figure 2.3 Figure 2.3 Shows Various Points on Three Different Production Possibility