A lot of people die and many factories were destroyed because of severe earthquake in a country . how will it affect the country's ppc. expain
Dear Student,
The answer given by Shreya is correct. Severe earthquake in a country leads to decline in both human (as people die) as well as capital (factories are destroyed) resources. As a result of which less resources are left for producing the goods. Thus, the decline in resources will lead to a leftward shift in the Production Possibility Curve (PPC).
In case of any doubts, do get back to us.
The answer given by Shreya is correct. Severe earthquake in a country leads to decline in both human (as people die) as well as capital (factories are destroyed) resources. As a result of which less resources are left for producing the goods. Thus, the decline in resources will lead to a leftward shift in the Production Possibility Curve (PPC).
In case of any doubts, do get back to us.