The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2

-Which of the following would not cause any kind of an outward shift of a nation's production possibilities curve [PPC]?

Question

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2
 
-Which of the following would not cause any kind of an outward shift of a nation's production possibilities curve [PPC]?

Quizplus · Accepted Answer

A flood that renders thousands of acres of farmland unusable would cause the production possibilities curve to shift inward, reducing the amount of corn that can be produced. It would not cause an outward shift in the production possibilities curve.

The Figure Given Below Represents an Economy Producing Corn and Planes