1.

What will happen to PPF if there is technological upgradation in case of both the goods?

Answer»

Rightward SHIFT in PPF
Leftward Shift PPF
Rotation of PPF
None of these.

Solution :A. The basic idea is that anything that causes ECONOMIC output to increase or decrease will shift this CURVE. When the curve SHIFTS outward, or to the right, that means output is increasing. When the curve shifts inward, or to the left, that means output is decreasing. So, if there is TECHNOLOGICAL upgradation in case of both the goods then there will be a Rightward shift in PPF.


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