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)
give me a simple answer

Answer 1

The production possibilities curve shifts inward (toward the origin), showing a lower maximum output for the affected good (and possibly the whole economy). This happens because the natural disaster reduces the key resource, cutting the economy’s productive capacity.