GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decrease in taxes
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A reduction in unemployment
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The introduction of subsidies forindustries
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Technological advances in theindustries of the country
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Detailed explanation-1: -Outward or inward shifts in the PPF can be driven by changes in the total amount of available production factors or by advancements in technology. If the total amount of production factors like labor or capital increases, then the economy is able to produce more goods at any point along the frontier.
Detailed explanation-2: -Answer and Explanation: A decline in the capital and labor that are key inputs in production will lead to a decline in production activities in the economy thus level of output will decline hence reduction in the economic growth thus leading to shifting of PPF inward.
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. Discovery of new natural resources.