Question

Which of the following is likely to cause an inward shift in a country's PPC?

• A. Earthquake destroying resources of the country.
• B. Scientists discovering new machines.
• C. Workers getting jobs in the new metro-project.
• D. The country finds new reserves of crude oil.

Answer 1

The correct option is A Earthquake destroying resources of the country.

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.