Ceteris paribus which of the following events would most likely cause the production possibilities curve to shift inward?
A) The labor supply grows.
B) New factories are built.
C) A technological breakthrough occurs that makes production of all goods more efficient.
D) A major earthquake destroys several industrial centers.

Question

Quizplus · Accepted Answer

The destruction of industrial centers caused by a major earthquake would lead to a decrease in the availability of capital and labor, reducing the economy's ability to produce goods and services. This would cause the production possibilities curve to shift inward.

Ceteris Paribus Which of the Following Events Would Most Likely