How do the following economic changes affect production possibility cu

1.	How do the following economic changes affect production possibility curve of a economy ?
Answer» Solution :Impact of GIVEN ECONOMIC CHANGES on PPC should be understood keeping in consideration the CHANGE in availability of RESOURCES (increase or decrease) and then its impact on production potential of the economy (Rightward or Leftward shift). If resources are not changing i.e., remain unaffected then PPC will show no effect. Some important economic changes and their impact on PPC is discussed as given under:

Discussion