Login

Which factor leads to shift of PPC?

Dear Akash,
The above mentioned topic has been covered in our study material for economics. Follow the path to view the answer to the same.
Chapter-1( Introduction)-Lesson-2 (​Central Problems of an Economy and the Concept of Production Possibility Frontier)-under the topic 'Shifting and Rotation of PPC'  

  • -5
View Full Answer

Factors that effects PPC shift is:

  • economic growth or disaster
  • increase or decrease of resources
  • technological changes

Some examples to understand :Economic growth:sources of economic growth is accumulation of capital and tehnological advances.PPC will shift outwards to the right.Disaster:a shift inwards and to the left.Increase in resources:PPC shift to the rightDecrease in resources @ loss:PPC shift to the left.Improvement in technology :New innovations or improved techniques.PPC shift outwards.

  • 6
What are you looking for?