Imagine if India was not divided and Pakistan and Bangladesh were part of India only, in that case what changes could have been noticed in the PPC of India?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Rightward shift in PPC
We can notice a shift in the PPC of an economy, when there is an increase in the resources or technology of the country.
The integration of Pakistan and Bangladesh would have increased India's land, resources, and population. This additional capacity would likely lead to an increase in potential output, shifting the PPC to the right. This shift indicates an increase in the economy's ability to produce goods and services.