ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When the resources are reduced due to some reason like natural calamity in the economy then the production of commodities also decreases as they use these resources to develop the commodities. Therefore, if the production of the commodities decreases it leads to inward shift in the production possibility curve.

Detailed explanation-2: -When the curve shifts outward, or to the right, that means output is increasing. When the curve shifts inward, or to the left, that means output is decreasing.

Detailed explanation-3: -Answer and Explanation: A decline in the capital and labor that are key inputs in production will lead to a decline in production activities in the economy thus level of output will decline hence reduction in the economic growth thus leading to shifting of PPF inward.

Detailed explanation-4: -An outward shift of the PPC results from growth of the availability of inputs, such as physical capital or labour, or from technological progress in knowledge of how to transform inputs into outputs.