ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reading more books
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More people have moved to the country
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A storm destroys the land.
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A computers stop working and all robots no longer work.
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Detailed explanation-1: -Education and training increase knowledge, and knowledge tends to increase productivity, so this would shift the production possibilities curve to the right.
Detailed explanation-2: -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.
Detailed explanation-3: -A production possibility frontier (PPF) illustrates the combinations of output of two products that a country can supply using all of their available factor inputs in an efficient way. One way the PPF can shift outwards is if there is an increase in the active labour supply.
Detailed explanation-4: -For example, destruction of resources in an earthquake will reduce the productive capacity and as a result, PPF shifts towards the left.
Detailed explanation-5: -Production possibility frontier shifts outward when resources of production increases. Resources of production mean the factor of productions like capital, technology, labor. So when these inputs increase, the production capacity of the firm will increase. Therefore, the production possibility frontier shifts outward.