ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following would not shift the PPC outward
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Increase in technology
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Improved methods
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Increase in Population
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Change in consumer preferences
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Explanation:
Detailed explanation-1: -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-2: -The correct option is B. 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.
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.
There is 1 question to complete.