when all factor inputs are doubled , the production possibly curve will

Assessment: WAEC SSCE - Economics - 1999 (Objective) Subject: Economics

Question 1 Report

when all factor inputs are doubled , the production possibly curve will
Answer Details
The production possibility curve (PPC) shows the maximum possible combinations of two goods that an economy can produce with its existing resources and technology. When all factor inputs are doubled, it means that there is an increase in the amount of resources available for production. This will result in an outward shift of the PPC from its original position. Therefore, the possible outcome is that the PPC will shift from left to right, indicating an increase in the production capacity of the economy. The new PPC will show that the economy can produce more of both goods than it could before. It's worth noting that this scenario assumes that there is no change in technology or other factors that could affect production.

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