ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Production Possibilities Frontier (PPF) is a graph that shows all the different combinations of output of two goods that can be produced using available resources and technology. The PPF captures the concepts of scarcity, choice, and tradeoffs.

Detailed explanation-2: -The production possibility curve represents the nation’s capacity to produce the total amount of goods and services in its economy. If there are technological improvements, the productive capacity of the economy would increase leading to a rightward shift in the production possibility frontier.

Detailed explanation-3: -Which example BEST demonstrates the effect of artificial price controls on supply and demand? Both rent controls and minimum wage laws result in shortages.

Detailed explanation-4: -Factors of production is an economic term that describes the inputs used in the production of goods or services to make an economic profit. These include any resource needed for the creation of a good or service. The factors of production are land, labor, capital, and entrepreneurship.