If 200 people have been working on developing a new community that will feature houses and small businesses, what will happen to the PPC of the community if 100 people withdraw from developing the community?A.)the PPC will shift to the rightB.)the PPC will shift to the leftC.)the PPC will not changeD.)the PPC will become steeper
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The correct answer could be the option D - The PPC will be steeper.
PPC or the Production Possibility Curve is the hypothetical representation of the quantity of two different goods which are obtained by shifting the resources from the production of one good to the production of the other good. The curve represents the choice of the society in between 2 different goods.
As the production costs increase along with the production of the consumer goods, the slope of the PPC tends to become steeper. A steep PPC indicates a higher slope and a high opportunity cost.
PPC or the Production Possibility Curve is the hypothetical representation of the quantity of two different goods which are obtained by shifting the resources from the production of one good to the production of the other good. The curve represents the choice of the society in between 2 different goods.
As the production costs increase along with the production of the consumer goods, the slope of the PPC tends to become steeper. A steep PPC indicates a higher slope and a high opportunity cost.
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