Question

PPC shifts to left because of _____________.

• A. drought
• B. floods
• C. starvation
• D. all the above

Answer 1

The correct option is D all the above

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. When the resources are reduced due to some economic distortion or 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.