12 Questions | By Rhsoilerecon | Last updated: Mar 21, 2022 | Total Attempts: 717 Show Settings Feedback During the Quiz End of Quiz Difficulty Sequential Easy First Hard First Complete this quiz as practice.
Back to top What does an inward shift in the production possibility curve indicate?When the resources are reduced due to some reason like natural calamity in the economy then the production of commodities also decreases as they use these resources to develop the commodities. Therefore, if the production of the commodities decreases it leads to inward shift in the production possibility curve.
How does the production possibilities curve describe economic growth?Economic growth in the production possibilities curve (PPC) model. The production possibilities curve illustrates the maximum combination of output of two goods that an economy can produce, such as capital goods and consumption goods. If that curve shifts out, the capacity to produce has increased.
Which of the following is true about production possibility curve?The correct option is(a) It assumes a fixed quantity of resources. Economists have developed an economic concept to measure the production capacity of an economy. This concept is called the "production possibilities curve (PPC)," which shows all potential combinations of goods producible within an economy.
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