Question

ppc shifts left | ppc shifts right

• the country is hit by a natural disaster that destroys its infrastructure.
• the government starts 50 new medical clinics in rural areas.
• there is an acute shortage of teachers in several of the countrys states.
• seven computer hardware companies set up new manufacturing units in the country.

Explanation:

Analyze factors causing a leftward shift in the PPC

• A leftward shift of the Production Possibilities Curve (PPC) represents a decrease in a nation's productive capacity, resources, or technology.
• "The country is hit by a natural disaster that destroys its infrastructure" directly reduces physical capital and productive capacity.
• "There is an acute shortage of teachers in several of the country's states" reduces human capital development and productive capacity.

Analyze factors causing a rightward shift in the PPC

• A rightward shift of the PPC represents an increase in a nation's productive capacity, resources, or technology.
• "The government starts 50 new medical clinics in rural areas" increases human capital (healthier workforce) and infrastructure.
• "Seven computer hardware companies set up new manufacturing units in the country" increases physical capital and productive capacity.

Answer:

PPC Shifts Left	PPC Shifts Right
There is an acute shortage of teachers in several of the country's states.	Seven computer hardware companies set up new manufacturing units in the country.