Shifting the Production Possibilities Curve - Macro Topic 1.2 (Micro Topic 1.3)
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- Опубликовано: 25 ноя 2024
- In this video I explain how the production possibilities curve shifts when there is a change in resources or a change in technology. Understanding the general concept will help you understand the idea of economic growth, but keep in mind that a real economy is not this simple or predictable. The PPC just introduces these ideas, the details come later.
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But I am confused about worn out capital goods not being replaced
Will it be a shift to the inside of the curve?
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+GiyanieGurl Click the gear, then click speed, then click 0.5. Not everyone would rather him talk slower. You can also just go back and listen him say it again if you didn't get it.
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Can you explain the correct answer to this question? I chose C but my professor didn’t agree, and thinks the question is out of context. I think it’s possible and happens all the time.
An outward shift of a nation's production possibilities curve:
A. ensures the nation of an increase in real GDP per capita.
B. ensures the nation of an increase in real GDP, but not of real GDP per capita.
C. neither ensures a nation of an increase in real GDP nor of an increase in real GDP per capita.
D. ensures a nation of an increase in both real GDP and real GDP per capita.
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I like your explanation.
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