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number 1 Explain the effect of massive unemployment
on PPC?
Ans.
Employees are resources for the economy, when
the resources are not fully employed it represents
under utilization of the resources due to
under utilization economy will operate inside
the PPC.
Economy will operate at point R as shown in
this diagram.
Question number 2 What effect will a skill
development program like skill India have
on the PPC?
Ans.
Skill development program aimed at human capital
formation human capital formation, human capital
formation increases the capacity and skill
of Human Resources so with the same amount
of resources we can produce more goods and
services due to improved skills thus there
will be increase in production of both the
goods which leads to economic growth as a
result of it the PPC will shift rightward
due to economic growth.
as shown in this diagram
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Question number 3 What would be the impact
of clean India mission on PPC of the country
Ans.
PPC or the production possibility curve will
in the long term shifts rightward thereby
expanding the economy due to increased employment,
foreign currency inflow from the tourist,
better picture of the India in the world,
higher rankings, better ratings, multiplier
effects etc.
Rightward shift in the long run is shown in
this diagram
Question number 4 Why PPC is also called the
transformation curve?
Ans.
It is because in moving from one point to
another on PPC one good is transformed into
another not physically but by transferring
resources from one use to the another.
Question number 5 Explain the effect of GST
on PPC ?
Ans.
Due to change in the tax structure of India
by introducing GST, PPC will shift leftward
in the short run period because of the decrease
in the supply production Falls but in long
run period PPC will shift rightward because
of the simplified tax structure, production
will increase.
Question number 6 Explain the effect of full
employment on PPC ?
Ans.
Employees are resources for an economy full
employment means all those who are able and
willing to work gets a work thus it represents
optimum utilization of resources as a result
of it economic will operate on PPC.
The economy will operate at Point A due to
full employment.
Question number 7 How does make in India effect
the PPC of the Indian economy ?
Ans.
What make in India is trying to do is provide
financial boost via investment to the economy
this will result in multiplier effect in the
economy the effects though fades off with
time, but in general the result will be positive.
Thus direct effect on PPC will be rightward
due to increase in investment.
Rightward shift in PPC due to make in India
is shown in this diagram
Question number 8 Explain the effects of floods
in Jammu and Kashmir on its PPC?
Ans. when the flood occurred in Jammu and
Kashmir it resulted in destruction of
Resources, thus the production capacity Decline,
as a result of it PPC shifts leftward.
Leftward shift in PPC due to flood in Jammu
and Kashmir is shown in this diagram.
Question number 9 Explain the effect of Demonetisation
in India on PPC ?
Ans.
Due to demonetization there were shortage
of cash in the economy due to lack of cash
producers were facing problem in purchase
of inputs.
This resulted in decrease in production of
goods in the economy because neither consumer
has cash to buy the goods nor producers to
purchase the inputs, as a result of it PPC
shifts leftward.
Leftward shift in PPC due to the demonetization
as shown in this diagram
Question number 10 explain the effect of economic
growth on PPC ?
Ans.
Economic growth implies rise in GDP of the
country, rise in GDP is a sign of increase
in production 
in the economy when production in the economy
rises PPC shifts rightward.
Rightward shift in PPC due to economic growth
is shown in this diagram
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