A decrease in the stock of capital will cause the

A) production possibility frontier to shift outward.
B) production possibility frontier to shift inward.
C) economy to move down the production possibility frontier.
D) economy to move closer to its production possibility frontier.

A decrease in the stock of capital, which is a key factor of production, would reduce an economy's ability to produce goods and services. This would be represented by a shift of the production possibility frontier (PPF) inward, indicating a reduction in the maximum possible output of two goods or services that an economy can achieve when all its resources are fully and efficiently utilized.