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Why a production possibility frontier might shift inwards or outwards?
Wiki User
∙ 13y ago
a production possibility frontier might shift inwards because the labour force shrinks,the supply of raw materials is depletes or a natural disaster decreases the stock of physical capital.
a production possibility frontier might move outwards 1 increase the supply of resources.migration increases the labour supply and he discovery of new oil reserves increase the supply of natural resources. 2 improve the technology. the discovery of more efficient means of production will shift the production possibility frontier outwards. 3 select an allocation of goods that has capital accumulation.some consumption must be given up today so that more capital goods can be produced
Wiki User
∙ 13y ago
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What are the Factors that can shift a production possibility curve?
Outwards Discovery of natural resources Technological innovation increase in the labour (fall in natural rate of unemployment) improvement in productivity and efficiency Inwards Brain drain a fall in the labour force depletion of the supply of the raw materials depletion of the capital stock due to a natural disaster etc
What causes a PPC to shift?
Factors that effects PPC shift is:economic growth or disasterincrease or decrease of resourcestechnological changesEconomic growth:sources of economic growth is accumulation of capital and tehnological advances.PPC will shift outwards to the right.Disaster:a shift inwards and to the left.Increase in resources:PPC shift to the rightDecrease in resources @ loss:PPC shift to the left.Improvement in technology :New innovations or improved techniques.PPC shift outwards.
What happens when interest rates increase?
well, it does two things to inflation. Firstly it increases the costs of production of firms therefore shifting Aggregate supply inwards (thereby increasing cost push inflation). It also shifts aggregate demand inwards because firms and households are less likely to want to borrow money in the case for consumption and investment because it increases their costs (this particularly affects the housing market and other big ticket items). This reduces the effects of demand pull inflation. So it shifts aggregate supply and aggregate demand inwards. When AS shifts inwards inflation increases. When AD shifts inwards inflation decreases. So the government would have to decide what the best policy is to do. Generally the shift inwards in AD will have a bigger effect on inflation (especially because the decrease in consumption which accounts for 60% of AD will hit consumers more - in mortgages) and also the effect will be maximised if the part of the AS curve is inelastic meaning an almost vertical drop in the general price level.
Extension in demand?
Google SearchWhat's New in A Level EconomicsPositive consumption externalitiesPositive Production externalitiesNegative Consumption externalitiesNegative Production ExternalitiesExternalitiesChanges in demand | extension, contraction, fall , riseMovement along the demand CurveExtension of demandExtension of demand is the increase in demand due to the fall in price, all other factors remaining constant. Contraction of demandContraction of demand is the fall in demand due to the rise in price, all other factors remaining constant. Shift in the demand curveUsually demand curves are drawn based on the assumption except for price all other factors remain the same. But there might be instances when demand may be affected by factors other than price. This will result in the change in demand although the price will remain the same. This change in demand may cause the demand curve to SHIFT inwards or outwards.Shift of demand curve OUTWARDS shows an increase in demand at the same price level. It is known as INCREASE IN DEMAND.Shift of demand curve INWARDS shows that less is demanded at the same price level. It is known as a FALL IN DEMAND.
What is trade between two or more countries called?
I'm going to go with "international commerce". But any mix of words where one half means "cross-border" and the other means "trade" could be used. Buying from another country and bringing the goods inwards = import Selling and sending out to another country = export
What is it called when a mirror bends inwards or outwards?
Convex when it bends outwards, concave when it bends inwards
Door sweep are installed on inside or outside of the door?
Depends if the door opens outwards or inwards. (Inwards go on inside, outwards on outside).
What rhymes with outwards?
Downwards of course and also inwards.
Does a Concave mirror bend light outwards or inwards?
infraction
Do you debit or credit carriage inwards in trial balance?
both carriage inwards and carriage outwards or debited in the trial balance
What is another word for in and out?
Inwards and outwards is the only thing I can think of. Or inside and outside.
Does a convex mirror curve inwards or outwards?
The convex mirror curves outwards while the concave mirror would curve inwards. The convex mirror traces light out making faraway objects bigger like in a telescope.
Is concave a shape?
Concave is not a shape, it is the term for when two lines meet facing inwards, rather than outwards (outwards is known as convex)
What does human lungs do?
Basically, the lungs exchange inwards of oxygen for outwards of waste gases.
What are the Factors that can shift a production possibility curve?
Outwards Discovery of natural resources Technological innovation increase in the labour (fall in natural rate of unemployment) improvement in productivity and efficiency Inwards Brain drain a fall in the labour force depletion of the supply of the raw materials depletion of the capital stock due to a natural disaster etc
What finger do you put the claddagh ring to say that your not taken?
On the right ring finger with the heart facing outwards. When the heart faces inwards on the right hand it indicates you are in a relationship. Left ring finger with heart facing outwards indicates engagement and facing inwards indicates marriage.
What does an ice skater do to change her rotational speed?
She can move her arms inwards - to increase the rotation speed - or outwards - to decrease it.
