Exhibit 1-9
-Refer to Exhibit 1-9. Suppose the amount of energy available to the economy declines. Which of the following is the most likely to happen?
A)A movement from Point D to Point C along the curve
B)A movement from Point C to Point D along the curve
C)A shift to Point B
D)A shift to Point A
E)A shift from Point A to Point B

Question

Exhibit 1-9 
-Refer to Exhibit 1-9. Suppose the amount of energy available to the economy declines. Which of the following is the most likely to happen?
A)A movement from Point D to Point C along the curve 
B)A movement from Point C to Point D along the curve 
C)A shift to Point B 
D)A shift to Point A 
E)A shift from Point A to Point B

Quizplus · Accepted Answer

A decline in available energy would likely cause a shift inward on the production possibilities curve, indicating a reduction in the economy's capacity to produce goods and services, which corresponds to a shift to Point B.

Exhibit 1-9 -Refer to Exhibit 1-9. Suppose the Amount of Energy Available