Question

Draw and explain a production possibilities frontier for an economy that produces milk and
cookies. What happens to this frontier if disease kills half of the economy’s cows?

Answer 1

Figure 3 shows a production possibilities frontier between milk and cookies (PPF1). If a disease kills half of the economy's cow population, less milk production is possible, so the PPF shifts inward (PPF2). Note that if the economy produces all cookies, so it doesn't need any cows, then production is unaffected...❤️