Micro Foundations · intermediate
What moves on the Production Possibility Frontier diagram
Destroying productive resources shifts the whole PPF inward, the mirror image of growth.
Start on the frontier.
Conflict destroys factories and infrastructure, the economy's resource base shrinks.
The frontier collapses inward: every attainable bundle is now poorer.
Examiners ask this as: war destruction, disaster capital, frontier inward, resources destroyed.
Other scenarios on Production Possibility Frontier