Consider Canada's production possibilities boundary.Suppose fire destroys many millions of hectares of valuable Canadian forest.The effect on the Canadian economy would be best illustrated by ________ the production possibilities boundary.
A)a movement inside
B)a movement along
C)a movement to a point beyond
D)a shift outward of
E)an inward shift of

Question

Quizplus · Accepted Answer

An inward shift of the production possibilities boundary reflects a decrease in the economy's ability to produce goods and services, which would occur after the destruction of valuable resources such as forests.

Consider Canada's Production Possibilities Boundary