Question
A shift inward of the production possibilities curve signifies that ___________.
a. the demand for the products has decreased, so the supply will decrease
b. the available production resources have decreased, so potential production levels will decrease
c. the available resources have increased, so potential production levels will increase
d. the demand for the products has increased, so the supply will increase
a. the demand for the products has decreased, so the supply will decrease
b. the available production resources have decreased, so potential production levels will decrease
c. the available resources have increased, so potential production levels will increase
d. the demand for the products has increased, so the supply will increase
Answers
GPT-4o mini
A shift inward of the production possibilities curve signifies that **b. the available production resources have decreased, so potential production levels will decrease**.
This shift indicates that the economy is now capable of producing fewer goods and services than before, which often results from a reduction in available resources such as labor, capital, or technology.
This shift indicates that the economy is now capable of producing fewer goods and services than before, which often results from a reduction in available resources such as labor, capital, or technology.