Question

Which of these would cause a rightward shift of the PPC curve?

• A. Improvement in technology
• B. Greater capital formation
• C. Increase in population
• D. All of the above

Answer 1

The correct option is D All of the above

Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. Therefore to achieve any point beyond PPC, there is need for increase in the present supply of resources and technology which leads to an outward shift in PPC as overall production increases which results in economic growth.