Explain why the production possibility curve slopes downward from left to right?
Answers
Answer:
PPC is the locus of points representing. different combinations of the two goods which the economy can produce from the given resources assumed to be employed fully and efficiently. A PPC is downward sloping.because to produce more quantity of one good, the economy must produce less quantity of the other good. It is because the resource is fixed.
Explanation:
Production Possibility Curve refers to the graphical representation of possible combinations of two goods that can be produced with given resources and technology.
PPC slopes downwards from left to the right. It is because, in a situation of fuller utilization of given resources, production of both the goods cannot be increased. More of Good X can be produced only with less of Good Y.