How does exhaustion of natural resources affects production possibility curve?

The exhaustion of Natural Resources shifts the production possibility curve (PPC) inward, indicating a decrease in an economy's capacity to produce goods and services. As resources become scarcer, the opportunity cost of production increases, leading to reduced efficiency and potential output. This shift reflects the limitations imposed by resource depletion, making it difficult for economies to achieve previous levels of production. Ultimately, it highlights the need for sustainable resource management to maintain economic growth.