Question

Factors that can shift the production possibility curve inward​

Answer 1

See below

Step-by-step explanation:

An inward shift of the production possibility curve represents a decline in a country's productive capacity. In other words, the production possibility curve will shifts inwards due to a reduction in a nation's production capacity.

factors that may cause the production capacity to reduce and the production possibility curve to shift inwards include

1. Natural disasters, including droughts, floods, and earthquakes, can have destructive effects on a country. They reduce the production potential by destroying infrastructure, factories, land quality, and decreasing labor.
2. Violent protests, Wars, terrorism, and political disturbances can hamper economic activities and shift the curve inwards.
3. A recession causes capital investment to drop. It means that workers are using older, less efficient machinery, which causes output per worker to decline.