Multiple Choice
Consider a country that has two industries.In the north,they grow wild rice,which requires plenty of rainfall.In the south,they grow wheat,which requires a moderate amount of rainfall (too much rainfall is bad for wheat production) .One year,there is a record rainfall.This results in
A) a parallel shift inward of the production possibilities frontier.
B) a parallel shift outward of the production possibilities frontier.
C) the production possibilities frontier rotating,with the wild rice intercept increasing,and the wheat intercept decreasing.
D) the production possibilities frontier rotating,with the wild rice intercept decreasing,and the wheat intercept increasing.
E) the production possibilities frontier becoming linear.
Correct Answer:

Verified
Correct Answer:
Verified
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