Question

what will likely be the impact of large scale outflow of foreign capital PPC Economic And Why

Answer 1

Heya....

Firstly remember here is outflow of foreign capital not inflow...

So PPC will shift to backward in left...

Reason....

Foreign capital is required to our country's growth and it is going out of our economy so our economy can not be achieve its potential output and it would be deduction in resources do it shifts backward...

Answer 2

hey there !!
$\underline{ANSWER}$
A large scale of the outflow of the foreign capital would lead to the reduction in the resources available to an economy.

The decline in resources would rather lead further to a decline of the country’s overall capacity.

This will lead to a downward shift in the production possibilities curve because now the economy will produce less of both commodities.
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