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Due to ‘Make in India’, there has been large inflow of foreign capital. It will lead to the following change in PPC:

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Question

Due to ‘Make in India’, there has been large inflow of foreign capital. It will lead to the following change in PPC:

Options

  • Graph

  • Graph

  • Graph

  • Graph

MCQ
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Solution

Graph

Explanation:

Large inflow of foreign capital increases the economy’s resources for producing both goods, so the PPF shifts rightward. Among the diagrams, the one showing a rightward shift of the entire PPF is correct.

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Chapter 1: Introduction - OBJECTIVE QUESTIONS [Page 1.36]

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Sandeep Garg Introductory Microeconomics [English] Class 11
Chapter 1 Introduction
OBJECTIVE QUESTIONS | Q 33. | Page 1.36
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