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What will be the effect on PPC of Bihar if better job opportunities are created in Bihar?

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Question

What will be the effect on PPC of Bihar if better job opportunities are created in Bihar?

Short Answer
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Solution

Better job opportunities will help employ previously unused labour. If the economy was producing inside its PPC because of unemployment, actual production will move towards the PPC as resources are used more fully. The PPC itself does not shift unless productive capacity changes.

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Chapter 1: Introduction - REVISION EXERCISE [Page 1.44]

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Sandeep Garg Introductory Microeconomics [English] Class 11
Chapter 1 Introduction
REVISION EXERCISE | Q 23. | Page 1.44
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