Referring to a production possibilities curve and the goods being compared,depict the economic event.The bubonic plague (Black Death)in the 1300s killed one-third of Europe's population (capital goods vs.consumer goods).
A)A movement from a point inside the curve to a point on or near the curve
B)A movement from a point on or near the curve to a point inside the curve
C)A shift in the entire curve to the right (outward)
D)A shift in the entire curve to the left (inward)
E)A movement along the curve

Question

Quizplus · Accepted Answer

The bubonic plague significantly reduced the labor force, decreasing the capacity to produce both capital and consumer goods. This reduction in productive capacity is represented by a leftward shift of the entire production possibilities curve, indicating a decrease in the potential output of an economy.

Referring to a Production Possibilities Curve and the Goods Being