Commerce Exam > Commerce Questions > A PPC can shift its position if and only ifa)...
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A PPC can shift its position if and only if
- a)If technology improves
- b)If resources remain constant
- c)None of these
- d)If technology remains constant
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
A PPC can shift its position if and only ifa) If technology improvesb)...
The most common reason a PPF would shift is because of a change in technology, or because of economic growth.
Most Upvoted Answer
A PPC can shift its position if and only ifa) If technology improvesb)...
Explanation:
A PPC (Production Possibility Curve) shows the maximum possible combinations of two goods that can be produced in an economy with the given resources and technology. The position of the PPC represents the level of technology and available resources in the economy.
Shifting of PPC:
The position of the PPC can shift if there is a change in the level of technology or available resources. This means that the PPC can shift outward or inward.
Outward shift:
An outward shift of the PPC indicates an increase in the level of technology or available resources. This means that the economy can produce more of both goods. For example, if there is a technological advancement in the production of cars, the economy can produce more cars with the same resources or produce the same number of cars with fewer resources. Therefore, the PPC shifts outward.
Inward shift:
An inward shift of the PPC indicates a decrease in the level of technology or available resources. This means that the economy can produce less of both goods. For example, if there is a natural disaster that destroys some of the resources used in the production of goods, the economy can produce less of both goods with the same level of technology. Therefore, the PPC shifts inward.
Conclusion:
Thus, it can be concluded that a PPC can shift its position if and only if there is a change in the level of technology or available resources. It cannot shift its position if technology remains constant and resources also remain constant.
A PPC (Production Possibility Curve) shows the maximum possible combinations of two goods that can be produced in an economy with the given resources and technology. The position of the PPC represents the level of technology and available resources in the economy.
Shifting of PPC:
The position of the PPC can shift if there is a change in the level of technology or available resources. This means that the PPC can shift outward or inward.
Outward shift:
An outward shift of the PPC indicates an increase in the level of technology or available resources. This means that the economy can produce more of both goods. For example, if there is a technological advancement in the production of cars, the economy can produce more cars with the same resources or produce the same number of cars with fewer resources. Therefore, the PPC shifts outward.
Inward shift:
An inward shift of the PPC indicates a decrease in the level of technology or available resources. This means that the economy can produce less of both goods. For example, if there is a natural disaster that destroys some of the resources used in the production of goods, the economy can produce less of both goods with the same level of technology. Therefore, the PPC shifts inward.
Conclusion:
Thus, it can be concluded that a PPC can shift its position if and only if there is a change in the level of technology or available resources. It cannot shift its position if technology remains constant and resources also remain constant.
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Community Answer
A PPC can shift its position if and only ifa) If technology improvesb)...
Because of improvement in technology production increases and thus ppc curve will shift upward
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A PPC can shift its position if and only ifa) If technology improvesb) If resources remain constantc) None of thesed) If technology remains constantCorrect answer is option 'A'. Can you explain this answer?
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