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Write five reasons of downward sloping of PPC curve.ON BASIS OF CLASS 11
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Why does PPC slope downwards?
PPC shows the various alternative combinations of goods and services that an economy can produce when the resources are fully and efficiently employed, it is the combination of two goods that can be produced with the available resources and technology.
So the production of one good can be increased by taking resources from the production of another good as there is inverse relationship between the change in quantity of production of one good to the change in the quantity of production of another good. Therefore the PPC slopes downwards.
In Simple Language, the downward slope of PPC (Production Possibility curve) means that if the country wants to produce more of Good X, it has to produce less of the other Good Y.
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