Suppose drought destroys many millions of acres of valuable Canadian farmland.The effect on the Canadian economy would be to move
A)it along its production possibilities boundary.
B)its production possibilities boundary inward.
C)it beyond its production possibilities boundary.
D)its production possibilities boundary outward.
E)None of the above.There would be no change in Canada's production possibilities boundary.

Question

Quizplus · Accepted Answer

Drought destroying many millions of acres of valuable Canadian farmland would result in a reduction in the country's productive resources, leading to a decrease in the production possibilities. As a result, the production possibilities boundary would move inward. Therefore, option B is the correct choice.

Suppose Drought Destroys Many Millions of Acres of Valuable Canadian