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Standard XI
Economics
Question

Resources are allocated to Use - 1 and Use - 2 to produce wheat and apples. Technology improves for the production of wheat. How would it impact the PPC? Draw a suitable diagram.

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Solution
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Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. So if there is an improvement in the technology for the production of wheat then the output of only wheat will increase which will rotate the production possibility curve of wheat to the right. from ab to ab1

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