Figure 2-4 Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4.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 Z to X?
A)a,b,and c
B)a and b only
C)a and c only
D)a only
E)c only

Question

Figure 2-4  Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4.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 Z to X?
A)a,b,and c 
B)a and b only 
C)a and c only 
D)a only 
E)c only

Quizplus · Accepted Answer

A war that kills a significant portion of a nation's population (event c) could cause a movement from Z to X, as it would reduce the labor force and potentially decrease the nation's production capacity, shifting the production possibilities inward.

Figure 2-4 Figure 2-4 Shows Various Points on Three