Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

There was a severe earthquake witnessed by the people of Karnataka, What will happen to PPC in such a case?

Options:

Shift to the left

Shift to the right

Upward movement 

Downward movement

Correct Answer:

Shift to the left

Explanation:

The production possibility curve will shift to left. Any shift in the PPC is witnessed when there is increase or decrease in resources of the country or its technology. When, the catastrophic event of earthquake was encountered by the people of Karnataka, it caused a huge loss to the resources and manpower of the state, resulting in a leftward shift in the PPC.