can a nation’s PPC shift inward? Give circumstances. Likewise, what factors could cause a nation’s PPC...
can a nation’s PPC shift inward? Give circumstances. Likewise, what factors could cause a nation’s PPC to shift outwards?
Homework Answers
PPC gives the optimal combination of goods that could be produced efficiently in an economy given the available resources and technology.
A PPC will shift inwards if there has been a decline in efficient allocation of resources or decline in technology. This means the economy is shrinking. This could happen due to war or natural disasters like hurricane, drought.
A PPC will shift out if the economy is growing. The labor force has become productive, new technology has been discovered, more resources like land and labor are available.
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can a nation’s PPC shift inward? Give circumstances. Likewise,
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