Economicsproject 180215173919
Economicsproject 180215173919
“Production Possibility
Curve”
CERTIFICATE
This is to certify that master NIRAJ
{K V No.2 INDORE}
I feel highly privileged & honored in making the project
report on PRODUCTION POSSIBILITY CURVE
(PPC).
I express my sincere gratitude to our teachers, parents,
and all our friends for their kind cooperation for preparing
this project. My special thanks to our guide, our mentor
Mrs. Shobha Prajapati for her continuous support &
encouragement that led to the development of this
material. I would also like to thank our Principal
Mrs. Neelam Malviya madam for her caring &
encouraging attitude towards us.
I am highly grateful to all government officers and
Principals of different schools who have helped us to
prepare this project.
I look forward to receive valuable suggestions from
teachers, students and viewers also.
Thank You
Niraj Kumar (12th Commerce)
1. Introduction.
2. Assumptions.
3. Objectives of PPC.
4. Slope of PPC.
5. Properties of PPC.
6. Shapes of PPC.
7. Shifts of PPC.
8. Rotation of PPC.
9. Solutions of Central Problems by PPC.
10. Combinations on PPC.
11. Conclusion.
12. Bibliography.
A Production Possibility Curve (PPC) or Production Possibility
Frontier (PPF) shows the graphical presentation of various
combination of two goods that can be produced with
available technologies and given resources.
CombinationsProduction ProductionMOC/MRT
Or Of Good X of Good Y ( 𝑳𝒐𝒔𝒔 )
𝑮𝒂𝒊𝒏
Possibility (Bread) (Drill
presses)
A 0 10 -
1
B 1 9 1
=1
2
C 2 7 1
=2
3
D 3 4 1
=3
4
E 4 0 1
=4
1. Concave:-
It is due to increasing MOC. It means that in order to produce
more units of X, more units of Y are sacrificed or rate of
sacrifice increases. It is due to application of law of
diminishing returns.
2. Convex:-
Convex PPC is due to decreasing MOC. It means that in order
to produce more units of commodity X, less units of
commodity Y are sacrificed. This is because of application of
law of increasing returns.
3. Straight :-
It is due to constant MOC. It means that in order to produce
more units of commodity X (Clothes), same units of good Y
(Food) are sacrificed remains constant. This is because of
application of law of constant returns.
1. Rightward shift of PPC :-
The PPC will shift to the right when there is
Economic growth.
Increase in resources.
Technological change.
Economic disaster.
Decrease in resources.
Technological change.
1. What to produce:-
Due to scarcity of resources, an economy has to decide
allocation of its resources towards the chosen goods as all
goods cannot be produced.
Let us assume that economy has decided to produce wheat
and cotton and also different options of choosing the
quantities of these two goods.
B 400 160
C 480 80
2. How to produce:-
This problem refers to choice of technique of production
whether labour intensive or capital intensive, so that efficient
use of scarce resources can be made.PPC helps to solve this
problem.
All points on PPC, represent fuller utilization of resources
implying use of efficient technique of production.
Unattainable/Non-Feasible Combination
It refers to those combinations which cannot be
produced with the help of given resources and
technology.
Points outside PPC.
Scarce resources mean that the country can only produce
combinations of Good X and Good Y that are found on, or
within the PPC. Points A, B, C and D are attainable.
Internet:-
Google – www. Google.co.in.
PPC Wikipedia.
www.cbseguide.com.in
Thank you
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