Question

Determine which direction a nation’s PPC will shift as a result of these major events.


Several multinational companies

close their factories in the nation

because of its changing economic

climate.


A mass e-learning initiative makes

education cheaper and accessible

across the nation.


Government money is illegally

taken by increasingly corrupt

bureaucrats and politicians.


New economic policies facilitate

the signing of new international

trade agreements.

Answer 1

First you should know that a shift to the right of the PPC is caused by an increase of the economy, in other words, a growth of its capacity to produce goods. Instead, a shift to the left is because the economy lost or exhausted some of its scarce resources which reduced the potential of the economy production. Whit this explained, the answers are:  

Several multinational companies close their factories in the nation because of its changing economic climate. LEFT

 A mass e-learning initiative makes education cheaper and accessible across the nation. RIGHT

Government money is illegally taken by increasingly corrupt bureaucrats and politicians. LEFT

New economic policies facilitate the signing of new international trade agreements. RIGHT

Answer 2

PPC stands for Production Possibilities Curve. This  curve shifts rightwards when  a country fully and efficiently allocates resources because all factors of production are being used to their maximum potential. If  there is an inefficient allocation of resources the nation´s PPC will shift towards the left.

This being said ,If several multinational companies close their factories in the nation because of its changing economic climate the PPC shifts left. A clear example of inefficient use of possibilities .

If a mass e-learning initiative makes education cheaper and accessible across the nation the PPC Shifts right. In this initiative there is potential for  future development.

If government money is illegally taken by increasingly corrupt bureaucrats and politicians the PPC shifts left. Corruption is an  inefficient allocation of resources.

If New economic policies facilitate the signing of new international trade agreements the PPC Shifts right.Opnening markets is a way of utilising resources properly .