describe a specific event that would make each of the following happen to a production possibilities curve
a) a point moves down and to the left
B the frontier shifts to the right.
a) A point moves down and to the left on a production possibilities curve when there is a decrease in the overall production capacity of an economy. This could occur due to a variety of reasons, such as a natural disaster, war, or an economic recession. For example, if a country experiences a severe earthquake, it may damage its infrastructure and reduce its productive capacity. As a result, the economy will be able to produce fewer goods and services, leading to a downward and leftward movement of a point on the production possibilities curve.
To explain how to get this answer, you need to understand the concept of a production possibilities curve and the factors that can affect it. To determine why a point on the curve moves down and to the left, you need to consider events that would lead to a decline in an economy's productive capacity, such as a negative shock or disaster.
b) The frontier shifts to the right on a production possibilities curve when there is an increase in the overall production capacity of an economy. This can occur due to various factors like technological advancements, improved infrastructure, an increase in the labor force, or the discovery of new resources. For example, if a country invests in new technology that increases productivity and efficiency, it can produce more goods and services, causing the production possibilities curve to shift to the right.
To explain how to get this answer, you need to understand that the production possibilities curve represents the maximum output an economy can achieve with its given resources and technology. To determine why the frontier shifts to the right, you need to consider factors that can increase the productive capacity of an economy, such as technological progress, investments in infrastructure, and advancements in human capital.