Select the correct answer.
If 200 people have been working on developing a new community that will feature houses and small businesses, what will happen to the PPC of the
community if 100 people withdraw from developing the community?
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A. the PFC will shift to the right
B.
the PRC will shift to the left
C.
the PRC will not change
D.
the PRC will become steeper

Respuesta :

If 100 people withdraw from developing the community, the correct answer would be:

B. the PRC will shift to the left.

Explanation:
1. PRC stands for Production Possibility Curve, which shows the different combinations of goods and services that can be produced in a given time frame with available resources.
2. When 100 people withdraw from developing the community, the workforce decreases, leading to a decrease in the community's production capacity.
3. As a result, the PRC will shift to the left, indicating a reduction in the community's ability to produce both houses and small businesses.

Therefore, option B is the correct choice as the PRC will shift to the left due to the reduction in the workforce caused by the withdrawal of 100 people from the development of the community.