Home › CBSE Class 11 (Arts) › Economics › Microeconomics › A flood destroys much of a region's factories. W…
A flood destroys much of a region's factories. What happens to its PPF?
AIt shifts outward
BIt shifts inward
CIt turns into a line
DIt remains unchanged
Answer & Solution
Correct answer: B. It shifts inward
A disaster reduces productive capability, so the economy's frontier moves inward, toward the origin.
Related questions
Under a production possibility curve, moving along the frontier shows what?When markets fail to produce efficient outcomes, economists call it what?Who likely introduced the macro and micro distinction in economics in 1933?Oligopolists may form cartels. What does this usually cause?A natural monopoly arises when one producer can do what?A market with only one buyer and many sellers is called what?Which market structure has many firms selling slightly different products?A duopoly is a special case of which market structure?