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Introduction of Micro-Economics — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIntroduction of Micro-Economics3 Marks
Question
In what circumstances may the production possibilities frontier shift away from the origin? Explain.
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Answer

The Production Possibility Frontier may shift away from the origin due to the following:
  1. Increase in resources: leads to more production of both the goods. As a result, PPF shifts away from the origin.
  2. Improvement in technology, i.e., better technology: It is said better technology leads to more production of both the goods. As a result, PPF shifts away from the origin.

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