Free Notes Download Link https://t.me/jhansi_institute Hello Students, In today's class we will discuss all these points :
Production Possibility Curve 00:36
Production Possibility Schedule 04:05
Attainable and Unattainable Combinations of Output 08:58
Shifting of Production Possibility Curve 11:45
Rotation of Production Possibility Curve 14:58

New Session 2022 2023 Economics According to new CBSE Syllabus, Microeconomics Chapter 1 Economics and Economy Part 2 Production Possibility Curve or Production Possibility Frontier or Transformation Curve or Production Boundry

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CENTRAL PROBLEMS
OF AN ECONOMY
PRODUCTION POSSIBILITY CURVE
Speaker Pankaj Raikwar
SESSION 202223
CHAPTER 2
4. PRODUCTION POSSIBILITY CURVE
Production possibility curve is a curve showing alternative production possibilities of two
goods with the given resources and technique of production.
It is also called Production Boundary (or Production Frontier) as it shows the maximum
possible production with the given resources (and the given technology).
Illustration
Supposing an economy decides to produce only two goods, namely wheat and cloth, with its
available resources and '
given technology
'. If all the resources are used for the production of
wheat alone then 100 lakh tonnes of wheat can be produced.
Goods Production Possibilities
A B C D E
Wheat (lakh tonnes)
Cloth ('000 bales)
Table 1. Production Possibility Schedule
PRODUCTION POSSIBILITY CURVE

Attainable and Unattainable Combinations of Output
All points on the PPC or inside the PPC are attainable combinations of output, with the given
resources and technology.
Thus, any point on the boundary line or within the boundary line of production (within the
shaded area) is a point that shows
attainable combination
of output of two goods.
Any point outside the boundary line of production shows
unattainable combination
of output of two goods.

Shifting/Rotation of Production Possibility Curve
Shifting/Rotation of Production Possibility Curve
(1) Change in Resources
(i) Resources are Increased:
If resources are increased, we can
produce more of both the goods.
Accordingly, PPC shifts to the right,
as shown in Fig. 2 (from ab to albi):
(ii) Resources are Reduced:
If resources are reduced, we can
produce less of both the goods.
Accordingly, PPC shifts to the left, as
shown in Fig. 3 (from ab to albi):
(2) Change in Technology
(2) Change in Technology
(i) Efficient Technology for the Production of GoodX:
Efficient technology for the production
of GoodX would mean more
production of GoodX with the same
resources.
Accordingly, PPC would rotate (NOT
SHIFT), as shown in Fig. 4 (from ab
to dbl):
(ii) Efficient Technology for the Production of GoodY:
Efficient technology for the production
of GoodY would mean more
production of GoodY with the same
resources.
Accordingly, PPC would rotate (NOT
SHIFT), as shown in Fig. 5 (from ab
to alb):
(iii) Efficient Technology for the Production of both GoodX and GoodY:
Efficient technology for the production
of both GoodX and GoodY would
mean greater production of both
GoodX and GoodY with the same
resources.
Accordingly, PPC would shift to the
right, as shown in Fig. 6 (from db to
a,b,):

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