Question

What will happen to PPF if there is technological upgradation in case of both the goods?

Options

• Rightward shift in PPF

• Leftward Shift in PPF

• Rotation of PPF

• None of these

Answer 1

Rightward shift in PPF

Explanation:

Technological upgradation for both goods increases productive capacity for both goods, so the PPF shifts rightward. Rotation occurs when only one good is affected.