Question

Which factor will not move the PPF for this economy to a higher PPF curve?

• A. Discovery of new stock of resources.
• B. Use of latest technology.
• C. Use of outdated technology.
• D. Both A & B

Answer 1

Answer: (C)

Use of outdated technology.

Use of outdated technology- this factor will not move the PPF for this country too a higher PPF curve.

All the points on PPC can only be achieved if the resources are efficiently utilized with the use of present technology but if there is any degradation in the present technology it will result in under utilization of resources which will decrease the overall production and PPC will shift inward. Therefore,if the technology is outdated then the production will be affected and it will not result in higher PPC.