1.

The shift in PPC is caused due to:

Answer»

Increase in resources for production of both the GOODS
Increase in resources for production of butter only
Increase in resources for production of guns only
None of these.

Solution :A. The PPC of an economy shifts OUTWARD if: Resources used in production such as COAL, oil, and POPULATION in the economy increase. The economy SEES improvements in technology which make production more efficient; more goods can be produced with the same resources.


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