ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer Driven Change
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Producer Driven Change
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Government Driven Change
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Resource Driven Change
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Detailed explanation-1: -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-2: -An improvement in the literacy rate of an economy will not cause an outward shift in the production possibilities curve of the economy as a PPC shifts outwards only when there is an improvement in the state of technology or an increase in the number of resources.
Detailed explanation-3: -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. If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier.
Detailed explanation-4: -An entrepreneur is a person who combines the other factors of production-land, labor, and capital-to earn a profit.