ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -When the PPF curve moves outwards (outward shift), we can infer there has been growth in an economy. This can result from an increase in resources. It can also represent improved technology. When the PPF curve moves inwards (inward shift) it suggests the economy is shrinking.

Detailed explanation-2: -Which of the following is the best description of the production possibilities frontier (PPF)? The PPF is a curve showing alternative combinations of goods that can be produced when available resources are used efficiently.

Detailed explanation-3: -Economic growth in the production possibilities curve (PPC) model. The production possibilities curve illustrates the maximum combination of output of two goods that an economy can produce, such as capital goods and consumption goods. If that curve shifts out, the capacity to produce has increased.

Detailed explanation-4: -The correct option is C The economy has to sacrifice some production of one commodity in order to increase the production of another commodity. Explanation: Production possibility frontier is the graph that indicates the various production possibilities of two commodities when resources are fixed.