answersLogoWhite

0


Best Answer

Any time the PPC curve shifts outward it indicates economic growth, however reaching a point outside of an PPC can be reached by using trade.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Will economic growth necessarily involve a parallel outward shift of the production possibility curve?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

How did Social Darwinism parallel the economic doctrine of laissez-faire?

to break this down, the strongest will survive in free trade (this is the easy way to say it). if you have an unstable economy and no central govt. you will fail and will not be able to participate in free-trade (Laissez-fair)


What is parallel economy?

Parallel economy related to the black money or unaccounted money. It causes big loss in the tax revenue for the government.


Discuss Factor pricing under perfect competition?

factor pricing means the payments made to various factors of production .for example- land,labour ,capital,entrepreneur gets rent,wages,interest and profit respectively for their contribution in production. under perfect competition supply of labour is perfectly elastic.(i.e. supply curve is drawn parallel to x-axis.). to understand factor pricing ,one needs to get acquainted with marginal productivity theory of production first which states that factors are paid the value of their marginal physical product.price of a factor is determined by its total demand and supply schedules.


To be effective what do key choices must be?

parallel


How do governments solve market failure?

First of all the economy failure can be divided under two categories, namely macroeconomic and micro-economic failure. Macroeconomic failures are more grave than the latter and can only be corrected by the government by ensuring policies. For example a new tax policy or wages policy can ensure a new source of income to resolve the failures temporarily. If a micro-economic failure occurs, this can be very easily solved by providing goods, funds or services directly to the affected party. Another way of solving micro-economic failures, this time on the market, can be by creating parallel markets, which will then provide competitive ways of restoring the affected market.