Question

11 std solution of introductory microeconomics what will likely be the impact of large scale inflow of foreign capital in india on ppc and why?

Answer 1

ppc will shift right wards.

Answer 2

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Large scale flow of Foreign capital leads to greater flow of money in the economy. It will lead to increase in the availability of resources & production capacity .

Thus, PPC(Production Possibilities Curve) will shift to the rightward.