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| 1. |
Give the various reasons for shift in production possibility curve. |
| Answer» Solution :1. Occurrences that may SHIFT it rightward may include, but are not limited to, population growth (more educated people to produce more of both GOODS on the axes) and technological improvements (which can help boost the productivity of the workforce).2. Natural disasters may cause leftward shifts of the curve by reducing the productive capabilities of the economy. Of course, there are other things such as economic crises that could lead to an overall reduction in the PRODUCTION of goods and SERVICES. | |