Figure 2-3 Figure 2-3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2-3.Consider the following events:
A.a reduction in the patent protection period to no more than 2 years
B.a war that destroys a substantial portion of a nation's capital stock
C.the lack of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to V?

Question

Figure 2-3  Figure 2-3 shows various points on three different production possibility frontiers for a nation.
-Refer to Figure 2-3.Consider the following events:
A.a reduction in the patent protection period to no more than 2 years
B.a war that destroys a substantial portion of a nation's capital stock
C.the lack of a secure and enforceable property rights system
Which of the events listed above could cause a movement from W to V?

Quizplus · Accepted Answer

The movement from W to V represents a decrease in production possibilities. Event A, a reduction in patent protection period, is unlikely to cause such a decrease on its own. Event B, a war that destroys a substantial portion of a nation's capital stock, could certainly cause such a decrease. However, the lack of a secure and enforceable property rights system is also likely to contribute to a decrease in production possibilities, as it could lead to reduced investment, innovation, and efficiency. Therefore, the most likely event to cause the movement from W to V is C, a lack of secure and enforceable property rights system.

Figure 2-3 Figure 2-3 Shows Various Points on Three