In figure- of the PPC from ab to ab-1 shows-increase in resourcesdecrease in resourcesimprovement in technology of Good - Aimprovement in technology of Good - B

Question

Toppr Admin · Accepted Answer

Production possibility-curve shows all the different attainable combinations of-xA0- production of two-commodities that can be produced in an economy with the given resources and-technology- when they are fully utilized- So- if there is improvement in the technology for a respective commodity- then the production of that commodity rises and PPC shifts on one end-

In figure, shift of the PPC from ab to ab1 shows:increase in resourcesdecrease in resourcesimprovement in technology of Good - Aimprovement in technology of Good - B

In figure, shift of the PPC from $a b$ to $a b_{1}$ shows:

increase in resources
decrease in resources
improvement in technology of Good - A
improvement in technology of Good - B