Question: Explain how each of the following situations would affect a nation's production possibilities curve.
(i) A technological innovation allows the nation to more efficiently convert solar energy into electricity.
(ii) A prolonged recession increases the number of unemployed workers in the nation.
(iii) A category 5 hurricane destroys over 40 percent of the nation's production capacity.
(iv) The quality of education in the nation's colleges and universities improve greatly.
(v) The nation passes a law requiring all employers to give the employees 16 weeks of paid vacation each year. Prior to this law employers were not legally required to give employees any paid vacation time.