Explain why ppc is downward sloping from left to right
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When resources are fully utilized in the economy then production takes place on ppc
If the given resources are fully employed and efficiently utilized a country can operate anywhere in ppc.
But if there is unemployment or inefficient utilization of resources a country may be forced to operate inside the ppc
ppc shifts rightward due to -
1) Improvement in technology
2) Increase in the productive resources of the economy i.e. increase in the quality of skilled workers, increase in the quality of equipment
If the given resources are fully employed and efficiently utilized a country can operate anywhere in ppc.
But if there is unemployment or inefficient utilization of resources a country may be forced to operate inside the ppc
ppc shifts rightward due to -
1) Improvement in technology
2) Increase in the productive resources of the economy i.e. increase in the quality of skilled workers, increase in the quality of equipment
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