Question

A shift inward of the production possibilities curve signifies that

Answer 1

When it shifts inwards, it indicates that the economy is shrinking due to a failure in its allocation of resources and optimal production capability. A shrinking economy could be a result of a decrease in supplies or a deficiency in technology.

Answer 2

A shift inward of the production possibilities curve signifies that: C. The available production resources have decreased, so potential production levels will decrease.

Step-by-step explanation:

A. The demand for the products has increased, so the supply will increase B. The available resources have increased, so potential production levels will increase
C. The available production resources have decreased, so potential production levels will decrease
D. The demand for the products has decreased so, the supply will decrease