Question

what does the ppc curve show? when will it shift to the right

Answer 1

A production possibility curve (PPC) is the possible trade off of producing combinations of goods with constant technology and resources per unit time. One good can only be produced by diverting resources from other goods, and so by producing less of them. This tradeoff is usually considered for an economy, but also applies to each individual, household, and economic organization or to the right. If the economy were to shrink, then, of course, thecurve would shift to the left.

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