ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Will shift the PPC outward
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Will shift the PPC inward
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Will cause a movement along the PPC
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Will not change the PPC
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Detailed explanation-1: -As output increased, the PPF curve would be pushed outwards. A new curve, represented in the figure on which Y would fall, would show the new optimal allocation of resources. When the PPF shifts outwards, it implies growth in an economy.
Detailed explanation-2: -Increases in the quantity or quality of resources will shift the PPC outward, making it possible to produce greater quantities of both goods. Increases in the quantity of resources include more land, labor, or capital.
Detailed explanation-3: -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.
Detailed explanation-4: -So if there is increase or decrease in the supply of the resources used for production, it is reflected in the amount of output. Therefore, the production possibility curve shifts to the right or to the left.