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Question

An inward shift in a country's PPC reflects ____________.

A
increase in quantity of resources
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B
discovery of new resources
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C
identification of new means of production
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D
reduction in quantity of resources
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Solution

The correct option is C reduction in quantity of resources
When the resources are reduced due to some reason like natural calamity in the economy then the production of commodities also decreases as they use these resources to develop the commodities. Therefore, if the production of the commodities decreases it leads to inward shift in the production possibility curve.

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