Which factors lead to a shift of the PPC Class 11?

The factors leading to shifts in the PPC include:

• Changes in technology: If there are positive technological changes then PPC curve shifts outwards.
• Changes in resources: If there is increase in resources then PPC curve shifts outwards and if there is decrease in resources the PPC curve shifts inwards.

What are the 3 shifter of a PPC?

Shifters of the Production Possibilities Curve (PPC) These factors include: Change in the quantity or quality of resources. Change in technology.

What does not lead to shift in PPC?

Massive unemployment will not lead to shift in PPF.

When some resources are shifted?

Answer: When some resources are shifted from Use-1 to Use-2( given technology and resources) the marginal rate of transformation increases, as per the concept of Production possibility curve.

What are the 4 shifters for supply?

Supply shifters, which change the quantity supplied at every price point, cause the supply curve to move right or left….These factors reflect changes in:

• The cost of production.
• The cost of resources.
• The number of producers.
• Expectations.
• The demand for related goods.
• Subsidies, taxes, and more.

What are the 5 shifters of supply?

Terms in this set (4)

• price/Availability of resources.
• number of producers.
• technology.
• government action: taxes & subsidies.
• expectations of future profit.

What would cause the PPF to shift inward?

A PPF will shift inwards when an economy has suffered a loss or exhaustion of some of its scarce resources. This reduces an economy’s productive potential.

When PPC will shift to its right?

(i) When resources increase or grow, more of the goods can be produced. For example, when more capital is accumulated or new natural resources are discovered and used for production, PPC shifts to the right. (ii) PPC also shifts to the right when there is an improvement in technology.

What is slope of PPC?

The slope of any PPC equals the marginal cost of producing x, so if the slopes of the two PPC’s are equal, then A’s marginal cost of producing x is equal to B’s marginal cost, and production is efficient.

When some resources are shifted from use-1 to use to give the technology the marginal rate of transformation?

Marginal rate of transformation is the rate at which output of Good-Y is to be sacrificed for every additional unit of Good-X. Therefore, when some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of transformation increases.

What are the 8 shifters of supply?

Supply shifters include (1) prices of factors of production, (2) returns from alternative activities, (3) technology, (4) seller expectations, (5) natural events, and (6) the number of sellers. When these other variables change, the all-other-things-unchanged conditions behind the original supply curve no longer hold.