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Which of the following would not result in an rightward shift of the PPF?
- a)an increase in investment in capital stock.
- b)a reduction in the labour unemployment rate.
- c)the discovery of new oil deposits in India.
- d)an increase in the number of people taking management training courses.
Correct answer is option 'B'. Can you explain this answer?
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Which of the following would not result in an rightward shift of the P...
Explanation:
A production possibilities frontier (PPF) is a graph that shows the different combinations of two goods that an economy can produce given its resources and technology. A rightward shift of the PPF shows an increase in the economy's capacity to produce goods and services.
a) An increase in investment in capital stock: Investment in capital stock leads to an increase in the economy's capacity to produce goods and services. This results in a rightward shift of the PPF.
b) A reduction in the labour unemployment rate: A reduction in the labour unemployment rate implies an increase in the economy's labour force. This leads to an increase in the economy's capacity to produce goods and services. Therefore, it results in a rightward shift of the PPF. The statement is incorrect.
c) The discovery of new oil deposits in India: The discovery of new oil deposits in India implies an increase in the economy's natural resources. This leads to an increase in the economy's capacity to produce goods and services. Therefore, it results in a rightward shift of the PPF.
d) An increase in the number of people taking management training courses: An increase in the number of people taking management training courses implies an increase in the economy's human capital. This leads to an increase in the economy's capacity to produce goods and services. Therefore, it results in a rightward shift of the PPF.
In conclusion, option b) is incorrect since a reduction in the labour unemployment rate implies an increase in the economy's labour force, which leads to an increase in the economy's capacity to produce goods and services, i.e., a rightward shift of the PPF.
A production possibilities frontier (PPF) is a graph that shows the different combinations of two goods that an economy can produce given its resources and technology. A rightward shift of the PPF shows an increase in the economy's capacity to produce goods and services.
a) An increase in investment in capital stock: Investment in capital stock leads to an increase in the economy's capacity to produce goods and services. This results in a rightward shift of the PPF.
b) A reduction in the labour unemployment rate: A reduction in the labour unemployment rate implies an increase in the economy's labour force. This leads to an increase in the economy's capacity to produce goods and services. Therefore, it results in a rightward shift of the PPF. The statement is incorrect.
c) The discovery of new oil deposits in India: The discovery of new oil deposits in India implies an increase in the economy's natural resources. This leads to an increase in the economy's capacity to produce goods and services. Therefore, it results in a rightward shift of the PPF.
d) An increase in the number of people taking management training courses: An increase in the number of people taking management training courses implies an increase in the economy's human capital. This leads to an increase in the economy's capacity to produce goods and services. Therefore, it results in a rightward shift of the PPF.
In conclusion, option b) is incorrect since a reduction in the labour unemployment rate implies an increase in the economy's labour force, which leads to an increase in the economy's capacity to produce goods and services, i.e., a rightward shift of the PPF.
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Which of the following would not result in an rightward shift of the P...
Its answer is b because reduction in labour would not shift ppc to right however if you think that ppc will shift towards left then you are wrong as we draw ppc on the assumption that resources are fully and efficiently utilised . point will lie inside the ppc but ppc wouldn't shift.
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Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer?
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Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer?.
Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following would not result in an rightward shift of the PPF?a)an increase in investment in capital stock.b)a reduction in the labour unemployment rate.c)the discovery of new oil deposits in India.d)an increase in the number of people taking management training courses.Correct answer is option 'B'. Can you explain this answer?.
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