Answer:
See below
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
- 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.
- Violent protests, Wars, terrorism, and political disturbances can hamper economic activities and shift the curve inwards.
- A recession causes capital investment to drop. It means that workers are using older, less efficient machinery, which causes output per worker to decline.
