unit-1-central-problems

Unit-1 Central Problems

The purpose of this unit is to define the subject matter of economics, highlighting what constitute the central (essential) problems of an economy.

If your resources (means) are expanding (growing) what happens to the PPC? shifts outwardly or inwardly.

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Learning Pundits Content Team

Written on Jun 26, 2019 5:30:55 PM

With more resources the economy can produce more of both the goods (in a two goods situation). The PPC will shift outwardly. Of course it would ultimately depend on the technology used, the relative change in factor endowments and the efficiency with which resources are used in the production of the two goods.