ECONOMICS
SCARCITY
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[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Detailed explanation-1: -An individual production shift in the PPF means that a change in technology or resources affects production of each product in different ways, creating a skewed shift. An inward shift in the PPF means that the production of both goods decreases because of a change in resources or technology.
Detailed explanation-2: -When the curve shifts inward, or to the left, that means output is decreasing.
Detailed explanation-3: -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.
Detailed explanation-4: -If the production possibility frontier shifts to the right, this would show economic growth. Where there is an advancement of technology or increase in availability of resources or introduction of a production method with improved efficiency in respect to both the goods, then PPF will shift to the right, i.e. outwards.