Question

Maintaining the production of one goods at the same level and increasing the production of other goods is possible only ______.

• A. by technological improvement in the production of the goods whose production is being increased
• B. by reducing cost of production of one of these
• C. by reducing cost of production of both of them
• D. by technological improvement in the production of both the goods

Answer 1

Answer: (A)

by technological improvement in the production of the goods whose production is being increased

Maintaining the production of one goods at the same level and increasing the production of other goods is possible only by technological improvement in the production of the goods whose production is being increased. There is a rotation in the PPF when there is an increase in the productive capacity with respect to only one good.