Question

In the above figure , rotation of the PPC from ab to ab1 shows:
(1.) increase in resources
(2.) decrease in resources
(3.) improvement in technology of Good-A
(4.) improvement in technology of Good - B.

Answer 1

In the above figure rotation of the PPC from ab to ab1 shows improvement in technology of Good - B.

Answer 2

Answer:

Correct option is D)

Production possibility curve shows all the different attainable combinations of production of two commodities that can be produced in an economy with the given resources and technology, when they are fully utilized. So, if there is improvement in the technology for a respective commodity, then the production of that commodity rises and PPC shifts on one end.