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How does make in India affect the PPC?

How does make in India affect the PPC?

Explanation: So, when investments increases by make in india campaign, it will make PPC shift rightward as production will increase. It represents economic growth. Economic growth is an increase in what an economy can produce if it is using all its scarce resources.

What is the effect of Clean India Mission on PPC?

Clean India mission increases the cleaniness of the nation which reduces the number of people falling sick. This will increase the efficiency of the people to work and increases potential of the production process. Therefore PP curve will shift towards right.

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Which factors lead to a shift of the PPC?

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 is likely to be the impact of make in India appeal to the foreign investors by the Prime Minister of India on the production possibility curve of India explain?

“Make in India” appeal signifies invitation to foreign investors to produce in India. This will bring in foreign capitall into India and thus it will lead to increases in resources, raising production potential of the country. It will shift the PP curve upwards.

Which of the following program of India will have no impact on the economy PPC?

Answer: There will be no effect on Production Possibility Frontier (PPF).

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What is the effect of massive unemployment on PPC?

Massive unemployment is a situation of wastage of human resources which means there is an under utilization of resources, and in this case PPC will not shift anywhere but this point lies within the PPC.

How is PPC affected by unemployment in economy?

When there is unemployment, the maximum that an economy can produce does not change. So there is almost no effect on position of PP curve. The only thing is that economy produces somewhere below the curve. the PPC, the opportunity cost increases.

How does investment affect PPC?

When investment expenditure falls, firms produce less capital goods (i.e. factories and machinery). When this happens, the quantity of capital in the economy will increase at a slower rate. Rather, it will cause the PPC to shift outwards at a slower rate as firms are still producing new capital.

What will be the impact of Make in India appeal to the foreign investors by the Prime Minister of India on the PPF of India Why?

The Make in India appeal implores foreign producers to produce in India. This will increase the level of resources and lead to an increase in the country’s production potential.

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What will be the impact of Education for All campaign on PPC?

If the people of a country are well educated, they are said to have more efficiency to perform skilled work. Hence, the ‘Education for all Campaign’ increases the production potential, and thus, the production possibility curve will shift nearer to PPC.

How does unemployment affect PPC?

If there is unemployment, resources will not be utilized upto it’s potential. When production is below it’s potential due to unemployment, it would mean that the concerned economy is operating inside the PPC curve. There will be no shift in the PPC since resources and technology is same.