what will be the impact of recently launched 'clean india mission' of the ppc of economy and why?

Dear Student,
Production possibility curve shifts rightwards only when there is increase in level of resources and advancement in technology. Here due to Clean India Mission the resources of the economy will be fully utilised and it helps in better health of the human resources by cleaning the schools, colleges, roads, etc, which therefore increases the level of the resources in the economy that leads to the shift in the PPC towards right.

Regards

  • 27

Production Possibility Curve (PPC) is the locus of various combinations of two goods that an economy can produce when the resources are fully and efficiently employed at a given level of technology. Thus, when resources are not fully employed, economy produces within the Production Possibilities curve.

With Clean India Mission resources in the country will be more efficiently employed therefore economy will move from within the Production Possibility Curve to the the point on the Production Possibility curve. 
 

  • 3
PC or the Production Possibility Curve will in the long term shift righwards thereby expanding the economy due to increased employment, higher demand, more foreign currency inflow from tourists, better picture of India in the world, higher rankings, better ratings, multiplier effects, etc.
  • 5
What are you looking for?