Question

What would be impact on ppc curve on Indian economy if earthquake arise

Answer 1

If earthquake arise in any part of India then the impact on PPC curve would be negative.

Due to earthquake, resources would be ruined at high amount. There would be more and more damage to the country. Maximum amount of money and resources will be spent to compensate the loss and to provide living conditions to the citizens.

In this manner PPC curve will shift inwards. Reasons behind this are Loss of resources and natural disaster like earthquake. So this shows negative impact on PPC curve as it is shown in the given attachment.