ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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leftward
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rightward
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vertical
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indeterminate
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Detailed explanation-1: -A production possibility curve will shift outward when the economy can produce more units of both the products/services by using the given level of resources and technology. Thus, when the production possibility curve shifts rightwards, it shows an economic growth has occurred.
Detailed explanation-2: -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-3: -WHAT CAUSES SHIFT IN PPC? 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.