answersLogoWhite

0

War has two distinct effects on the PPF of a nation. Assuming the homeland of the nation at war were vulnerable to attack the entire PPF would shift inward as factories fell prey to enemy attacks - this was not the case for the US during WWII. WWII did not cause an inward shift of the PPF for the US because the mainland was not subject to attack. Production in the US was subject to the second effect of war on the production of a nation, the productive resources were shifted toward materiel for the war effort. This is not an outward shift of the PPF in any way, it is a movement along the PPF in favor of war machines at the cost of consumer goods. It is this second effect that enables countries to produce more war goods despite shrinking overall productivity than the country did in peace.

To reiterate, you must remember to treat the two effects of war on a nation's PPF separately because they are distinct effects. Changes in the overall PPF are a result of acts of war (e.g. bombing factories) whereas movements along the PPF are the result of being in warfare (i.e. a given factory now produces tanks instead of cars

User Avatar

Wiki User

12y ago

What else can I help you with?

Trending Questions
What are some recommended books on monetary policy for someone looking to deepen their understanding of economic principles and financial systems? What is the utility concept that economist use to measure? Interdependence in nature is illustrated by? How did World War 1 hurt buisnesses in Europe even after the war? What is the inflationary gap? Make a list of Indian companies entering into joint ventures with foreign companies. Find out the apparent benefits derived out of such ventures.? Is an area of economics that deals with the economy as a whole? A 21st-century country has recently seen rapid growth in its economy. Factories throughout the country employ millions of workers who produce consumer goods such as toys clothing and tools. While most? What are materials found in nature that are used in the production of goods and services and that are replenished on a consistent basis.? Would the money received for American cars exported to Italy be part of the US gross domestic product? Why would an organization want to build a enterprise system? Which wealthy businessman wrote the essay The Gospel of Wealthin which he encouraged wealthy people to use their money to benefit society? What does exchange goods mean? What is the answer for hidden meaning brain teaser with business pleasure in the middle of box? How important is it to you to produce error free work? What is the value of a 1932 US 2 dollar silver certificate? What is the difference between local market and national market explain with example? When farmers are only able to produce enough food for themselves with nothing left to trade or sell is called? What does marginal revenue product have to do with pay? Why do you study pure competition?