📚 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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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

Decrease in opportunity cost

B

Increase in opportunity cost

C

Economic growth

D

Decrease in resources

Understanding the Answer

Let's break down why this is correct

Answer

A rightward shift in the Production Possibilities Curve (PPC) shows that an economy can produce more goods and services than before. This increase usually happens due to factors like better technology, more resources, or improved skills of workers. For example, if a country discovers a new way to grow crops more efficiently, it can produce more food while still making other products. This shift means the economy is growing and can satisfy more needs and wants of its people. Overall, a rightward shift is a positive sign of economic development and increased productivity.

Detailed Explanation

A rightward shift means the economy can produce more goods and services. Other options are incorrect because Some might think a shift means costs go down; People might think producing more means giving up more.

Key Concepts

opportunity cost
Topic

Production Possibilities Curve Shifts

Difficulty

easy level question

Cognitive Level

understand

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