Table of Contents
- 1 What can shift a production possibility curve?
- 2 What does it mean if the PPF shifts in?
- 3 Which situation would most likely cause a nation’s production possibilities curve to shift inward?
- 4 What are the uses of Production Possibility Curve?
- 5 Which of the following would be likely to shift a nation’s production possibilities curve outward?
- 6 What would happen to the production possibility curve over time as natural resources are exhausted?
What can shift a production possibility curve?
Shifts in the production possibilities curve are caused by things that change the output of an economy, including advances in technology, changes in resources, more education or training (that’s what we call human capital) and changes in the labour force.
What does it mean if the PPF shifts in?
When the PPF shifts outwards, it implies growth in an economy. When it shifts inwards, it indicates that the economy is shrinking due to a failure in its allocation of resources and optimal production capability. A shrinking economy could be a result of a decrease in supplies or a deficiency in technology.
What is Production Possibility Curve with example?
For example, say an economy produces 20,000 oranges and 120,000 apples. On the chart, that’s point B. If it wants to produce more oranges, it must produce fewer apples. On the chart, Point C shows that if it produces 45,000 oranges, it can only produce 85,000 apples.
What two things can cause the PPC to shift outward?
Ways of causing an outward shift of a country’s production possibility frontier: Investment in capital i.e. plant and machinery and new technology. Inward migration of younger, skilled workers. Discovery of new natural resources.
Which situation would most likely cause a nation’s production possibilities curve to shift inward?
Which situation would most likely cause a nation’s production possibilities curve to shift inward? Any point inside the production possibilities curve indicates: the presence of inflationary pressures.
What are the uses of Production Possibility Curve?
The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.
In which situation can ppc be straight line?
Your Answer :- PPC can be a straight line only when MRT will be constant. If both the commodities are constant, then the MRT will be also constant. In these Lines, PPC stand for Production Possibility Curve.
What are the three 3 factors that could shift the PPC outward explain?
Ways of causing an outward shift of a country’s production possibility frontier:
- Investment in capital i.e. plant and machinery and new technology.
- Inward migration of younger, skilled workers.
- Discovery of new natural resources.
- Improved education, training and healthcare to lift labour productivity.
Which of the following would be likely to shift a nation’s production possibilities curve outward?
The opportunity cost of a choice is defined as the value of all the alternative choices. If a nation is producing a combination of goods inside its production possibilities curve, it is underutilizing its resources. A nation’s production possibilities curve can be shifted outward by technological development.
What would happen to the production possibility curve over time as natural resources are exhausted?
Answer: in the over time the natural resources are exhausted. ppc curve shift to left wards.
In which situation can PPC be straight line?