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Question
match each scenario with its effect on the ppc.
the country is using all its resources efficiently.
a new technology is invented to produce more food grains in the country.
the country plans to produce goods that are not possible to produce with the available resources.
many of the country’s young people died in an earthquake.
shifts ppc to the right
point on the original ppc
For "shifts PPC to the right":
A new technology to produce more food grains increases the country's production capacity, which shifts the Production Possibility Curve (PPC) to the right as it allows for more output of goods (including food grains and potentially others due to improved technology's spill - over or resource reallocation effects).
When a country uses all its resources efficiently, it is operating at a point on its original PPC because the PPC represents the maximum combination of goods that can be produced with the given resources and technology. Efficient resource use means the country is on the boundary of its production possibilities.
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A new technology is invented to produce more food grains in the country.