A town on the Gulf Coast is battered by a massive hurricane that destroys most of its productive resources.The community's production possibilities frontier (PPF)would show an
A) inward shift of the PPF.
B) outward shift of the PPF.
C) outward rotation along the x axis.
D) outward rotation along the y axis.
E) increase in opportunity cost.

Question

Quizplus · Accepted Answer

The destruction caused by the hurricane would likely result in a decrease in the town's productive resources, such as infrastructure, machinery, and workforce. As a result, the town's production possibilities would decrease, and the PPF would shift inward to reflect the new limitations on production. Option B is not correct, as an outward shift of the PPF would require an increase in resources, which is not the case. Options C and D are not relevant, as the rotation of the PPF would not be affected by the hurricane. Option E is also not correct, as the hurricane's impact on the production possibilities would be reflected in the shift of the PPF rather than a change in opportunity cost.

A Town on the Gulf Coast Is Battered by a Massive