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What Will Likely Be the Impact of the Large-scale Inflow of Foreign Capital in India on Production Possibilities Curve and Why? - Economics

What will likely be the impact of the large-scale inflow of foreign capital in India on Production Possibilities Curve and why?

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Solution

A large-scale inflow of foreign capital will lead to an increase in the availability of resources, thereby PPC will shift to the right from AB to CD.

Concept: Concept of Production
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2014-2015 (March) Foreign Set 3
Q 4.2
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APPEARS IN

2014-2015 (March) Foreign Set 3 (with solutions)
Q 4.2 | 3 marks
2014-2015 (March) Foreign Set 2 (with solutions)
Q 6.2 | 3 marks
2014-2015 (March) Foreign Set 1 (with solutions)
Q 5.2 | 3 marks
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