Suppose Drought Destroys Many Millions of Acres of Valuable Canadian

question 5

Multiple Choice

Suppose drought destroys many millions of acres of valuable Canadian farmland. The effect on the Canadian economy would be to move

• A)its production possibilities boundary inward.
• B)it beyond its production possibilities boundary.
• C)it along its production possibilities boundary.
• D)its production possibilities boundary outward.
• E)none of the above. There would be no change in Canada's production possibilities boundary.

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Definitions:

Social Overhead Capital

Public infrastructure that provides support for the economic activities of a country or region, such as roads, schools, and hospitals.

Education

The process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods.

Nutrition

The process of providing or obtaining the food necessary for health and growth.

International Monetary Fund

A global institution that provides financial assistance and advice to member countries to promote economic stability and growth.