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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
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.
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RELATED QUESTIONS
Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving reasons, its properties.
Give the meaning and characteristics of production possibility frontier.
Giving reason comment on the shape of production possibilities curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 8 |
| 1 | 6 |
| 2 | 4 |
| 3 | 2 |
| 4 | 0 |
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 20 |
| 1 | 18 |
| 2 | 14 |
| 3 | 8 |
| 4 | 0 |
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