Question

What will be likely impact of large scale inflow of foreign capital in india on the production of PPC and why

Answer 1

The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF assumes that all inputs are used efficiently.

Answer 2

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Large scale flow of Foreign capital leads to greater flow of money in the economy. It will lead to increase in the availability of resources & production capacity .

Thus, ppc will shift to the rightward.