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What does a production possibility curve show? When will it shift to the right?

Answer» <html><body><p></p>Solution :A production possibility curve measures the maximum output of two goods using a fixed amount of input. Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other. The curve measures the trade-off between <a href="https://interviewquestions.tuteehub.com/tag/producing-2229964" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCING">PRODUCING</a> one good versus another.PPC shifts to the right when there is an improvement in technology. When technological <a href="https://interviewquestions.tuteehub.com/tag/progress-607100" style="font-weight:bold;" target="_blank" title="Click to know more about PROGRESS">PROGRESS</a> takes <a href="https://interviewquestions.tuteehub.com/tag/place-1155224" style="font-weight:bold;" target="_blank" title="Click to know more about PLACE">PLACE</a>, it is possible to produce more of two goods with a <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> amount resources. It implies increase in <a href="https://interviewquestions.tuteehub.com/tag/productive-592949" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTIVE">PRODUCTIVE</a> capacity which means that the economy can produce more of both goods.</body></html>


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