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In the Figure Given Below, We See an Expansion of the Production-Possibility

Question 11

Multiple Choice

In the figure given below, we see an expansion of the production-possibility curve (from PPC1 to PPC2) . The two goods produced are wheat and cloth, which are land-intensive and labor-intensive respectively. The outward shift of the production-possibility curve shows:  Wheat \text { Wheat }  In the figure given below, we see an expansion of the production-possibility curve (from PPC<sub>1</sub> to PPC<sub>2</sub>) . The two goods produced are wheat and cloth, which are land-intensive and labor-intensive respectively. The outward shift of the production-possibility curve shows:  \text { Wheat }    A) biased growth. B) balanced growth. C) a move from a no-trade situation to free trade. D) a fall in production costs of both the goods.


A) biased growth.
B) balanced growth.
C) a move from a no-trade situation to free trade.
D) a fall in production costs of both the goods.

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