Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Ram and Sunita were discussing about their economics test on Production possibility frontier. They had an argument on the topic of "Shifts in PPC". According to you, which one of the following will indicate a rightward shift in the PPC?

Options:

Under-utilisation of resources

Degradation of technology

Increase in the level of resources

Both 1 and 2

Correct Answer:

Increase in the level of resources

Explanation:

The PPC shifts to the right in the following cases:

  1. Increase in the availability of resources
  2. Improvement in technology