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ppc class 11| introduction to microeconomics class 11 | WITH NOTES Video Lecture - Commerce

FAQs on ppc class 11- introduction to microeconomics class 11 - WITH NOTES Video Lecture - Commerce

1. What is PPC in microeconomics?
Ans. PPC stands for Production Possibility Curve. It is a graphical representation of the different combinations of two goods that can be produced in an economy under the given resources and technology.
2. What is the significance of PPC in microeconomics?
Ans. The PPC helps in illustrating the concept of opportunity cost, scarcity, and efficiency in production. It also assists in analyzing trade-offs between two goods and determining the optimal allocation of resources.
3. How is PPC constructed in microeconomics?
Ans. To construct a PPC, data on the maximum possible production of two goods is plotted on a graph, with one good on the x-axis and the other on the y-axis. The curve is then drawn by connecting the plotted points, representing the different combinations of goods that can be produced.
4. What does a point inside the PPC indicate?
Ans. A point inside the PPC indicates an inefficient use of resources, as the economy is not utilizing its resources to their full potential. It suggests that the economy can produce more of both goods without sacrificing the production of the other.
5. How can the PPC shift outward?
Ans. The PPC can shift outward by factors such as technological advancements, increase in resources, or improvement in the quality of resources. These factors lead to an increase in the productive capacity of the economy, allowing it to produce more of both goods.
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