Question

Shifts in production possibilities Suppose the fictional country of Yosemite produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for sorghum, an agricultural good, and microprocessors, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a breakout of avian flu that sickens millions of workers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther.

Answer 1

Due to an outbreak of avian flu reducing the labor force, the PPF for Yosemite would shift inward, representing a decrease in the country's production capacity for both agricultural and capital goods.

Step-by-step explanation:

The Production Possibilities Frontier (PPF) is an economic model representing the trade-offs a society faces when deciding how to allocate its finite resources between different possible goods and services. If the fictional country of Yosemite experiences a breakout of avian flu that sickens millions of workers, the PPF would shift inward.

This is because Yosemite's labor force, a key resource, is significantly reduced, impacting its ability to produce both agricultural and capital goods. To illustrate this effect on a graph, both endpoints of the PPF curve would need to be dragged downwards or towards the origin, representing a decrease in the maximum quantity of both sorghum and microprocessors that can be produced. This shift demonstrates a reduction in productive efficiency and capacity.