what is the likely effect of environmental degradation on production potential of country??expalin along wid diagram????(value based que)
Environmental degradation can have direct effects on the production potential of a country. For example: because of soil erosion, a farmer produces less output. Also, workers become less productive because of air pollution, water pollution and noise pollution and thus there is depletion of natural and human capital. In terms of Production Possibility Curve(PPC), environmental degradation shifts the PPC to the left. PPC shifts to the left because of lower quality of environment and human capital.