The effect on PPF for Wheat and cloth if the supply of capital falls by 10% and the supply of labor increases by 10%.
Concept Introduction:
The resources in the economy are scarce for the individuals as well as the economy as a whole, so it becomes important to use these resources efficiently in the production of goods and services. Efficiency in use of resources is getting the most of the available resources. The
If there is a change in the resources that affects both the goods on the production possibilities frontier curve, it will shift parallel to the original curve. However, if the change in resources only affects one of the products, it will bring about a change or movement along the PPF curve.
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- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning