Answer:
1. Disasters increase scarcity and reduce the output of economies.
In simplest terms, inputs are necessary for outputs; fewer inputs means fewer outputs. When a disaster damages or destroys resources – whether labor, capital, or natural resources – total production in the economy must fall.
The production possibilities frontier (PPF) is used by economists to model “production possibilities” – the output possible in an economy making full use of its available resources. The PPF shrinks when disasters reduce the availability of the resources used to make goods and services.
Step-by-step explanation: