a point from inside the PPC shifts towards the PPC
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B
PPC shifts rightwards
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C
PPC shifts leftwards
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D
a point outside PPC shifts on PPC
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Solution
The correct option is D a point from inside the PPC shifts towards the PPC
The points inside the production possibility curve reflects under-utilization of resources whereas the points on production possibility curve reflects full utilization of resources. Therefore, a shift from inside the production possibility curve to a point on it reflects increase in utilization of resources which also includes increase in employment.