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Question
A large number of technical training institutions have been started by the government. State its economic value in the context of production possibilities frontier.
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Solution 1
The government established technical training institutions to cope with advanced technology. This enabled human resources to improve their skills and to increase the level of output with low cost of production which leads to an increase in profit. Thus, the production possibility curve (PPC) will shift towards the right, and it reflects economic value with high production and skilled labour.
Solution 2
The economic value of technical training is that it raises the production potential of the country by raising the efficiency of the labour.
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