📚 Learning Guide
Production Possibilities Curve Shifts
easy

What does a rightward shift in the Production Possibilities Curve (PPC) indicate about an economy?

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Choose the Best Answer

A

Increase in resources

B

Decrease in efficiency

C

Constant resources

D

Reduction in output

Understanding the Answer

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Answer

A rightward shift in the Production Possibilities Curve (PPC) shows that an economy can produce more goods and services than before. This shift usually happens due to factors like improvements in technology, an increase in resources, or better education for workers. For example, if a country discovers new methods to grow crops more efficiently, it can produce more food, which shifts the PPC to the right. This means the economy is growing and can offer more choices to its people. Overall, a rightward shift indicates that the economy is becoming stronger and more capable of meeting the needs of its population.

Detailed Explanation

A rightward shift means the economy can produce more goods. Other options are incorrect because Some might think a shift means less efficiency; This answer suggests nothing has changed.

Key Concepts

Production Possibilities Curve
Topic

Production Possibilities Curve Shifts

Difficulty

easy level question

Cognitive Level

understand

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