BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decrease in taxes
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A reduction in unemployment
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The introduction of subsidies forindustries
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Technological advances in theindustries of the country
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Detailed explanation-1: -How can the Production-Possibilities Frontier be Shifted? Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology.
Detailed explanation-2: -An individual production shift in the PPF means that a change in technology or resources affects production of each product in different ways, creating a skewed shift. An inward shift in the PPF means that the production of both goods decreases because of a change in resources or technology.
Detailed explanation-3: -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.
Detailed explanation-4: -Shifts in the PPF Curve Given the fact that resources are scarce, we have constraints, which is what the curve shows us. When the economy grows and all other things remain constant, we can produce more, so this will cause a shift in the production possibilities curve outward, or to the right.