Question

What happens to a production possibilities curve if a natural disaster creates a scarcity of a key resource needed to make a product? Why does this happen? (1-2 sentences)(2 points) (answer in very simple words and grade 9 level)

Answer 1

If a natural disaster creates a shortage of a key resource, the production possibilities curve (PPC) will shift inward, meaning the economy can produce less of that product. This happens because the disaster reduces the availability of the resource needed to make goods, limiting what can be produced.