Question

The ppc will not shift when there is
(A) destruction of resources
(B) massive unemployment
(C) upgradation of technology
(D) discovery of new resources

Answer 1

Answer:

(B) massive unemployment

Answer 2

Massive unemployment and PPC shift

Explanation:

• Things that modify an economy's output, such as developments in technology, changes in resources, more education or training (what we call human capital), and changes in the labour force, generate shifts in the production possibilities curve.
• When technological advancements occur, PPC shifts to the right. When technology advances, it becomes possible to produce more of two commodities with the same quantity of resources.
• It suggests a rise in productive capacity, implying that the economy will be able to create more of both things. What will cause the PPC to shift out and in?
• The PPC will shift out and in as income and economic growth increase. Unemployment indicates that resources that could be used to produce goods are not being utilised.
• The economy does not attain the production possibilities curve–the curve that corresponds to full employment–when some resources are not employed for output the end result
• The production possibilities curve (PPC) model predicts economic growth.
• The production possibilities curve depicts the maximum output of two things that an economy, such as capital and consumption goods, can produce.
• The capacity to create has increased if that curve swings out.