Question

In one to two sentences, explain what happens to a production possibilities curve if a natural

disaster creates a scarcity of a key resource needed to make a product. Explain why this
happens. (2 points)

Answer 1

[AI-generated answer — Bot GPT 3.5]

If a natural disaster creates a scarcity of a key resource needed to make a product, the production possibilities curve will shift inward because the available resources for production are limited, therefore reducing the production potential in all other sectors.