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How does War in Country X, a situation that leads to the destruction of oil indu

ID: 1256276 • Letter: H

Question

How does War in Country X, a situation that leads to the destruction of oil industry capital within this country, affect the PPC of Country X?

Movement from a point inside this PPC to a point that's on the PPC

Movement from a point that's on this PPC to a point inside the PPC

Movement between 2 points, up along the PPC (i.e. toward gasoline)

Movement between 2 points, down along the PPC (i.e. toward heating oil)

Increase (shift outward) in the PPC that affects both goods

Decrease (shift inward) in the PPC that affects both goods

Increase (pivot outward) in the PPC that affects only gasoline

Increase (pivot outward) in the PPC that affects only heating oil

Decrease (pivot inward) in the PPC that affects only gasoline

Decrease (pivot inward) in the PPC that affects only heating oil

A.

Movement from a point inside this PPC to a point that's on the PPC

B.

Movement from a point that's on this PPC to a point inside the PPC

C.

Movement between 2 points, up along the PPC (i.e. toward gasoline)

D.

Movement between 2 points, down along the PPC (i.e. toward heating oil)

E.

Increase (shift outward) in the PPC that affects both goods

F.

Decrease (shift inward) in the PPC that affects both goods

G.

Increase (pivot outward) in the PPC that affects only gasoline

H.

Increase (pivot outward) in the PPC that affects only heating oil

I.

Decrease (pivot inward) in the PPC that affects only gasoline

J.

Decrease (pivot inward) in the PPC that affects only heating oil

Explanation / Answer

F. Decrease (shift inward) in the PPC that affects both goods.

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