There was a severe earthquake witnessed by the people of Karnataka. What will happen to PPC in such a case?

Shift to the left

the correct answer is Option 1: Shift to the left

The production possibility curve will shift to left. Any shift in the PPC is witnessed when there is increase or decrease in resources of the country or its technology.

• he Production Possibility Curve (PPC) represents the maximum possible output an economy can produce with its available resources and technology.
• A severe earthquake in Karnataka would lead to destruction of infrastructure, loss of human lives, and damage to productive resources, reducing the overall production capacity of the economy.
• Since fewer goods and services can now be produced using the available resources, the entire PPC shifts to the left, indicating a reduction in the economy's productive potential.