Question

Give reasoning of production possibility curve and opportunity cost to depict two situations involving trade offs at societal level.also give a hypothetical situation resulting to shift of production possibility curve in both situation

Answer 1

Both production possibility curve and opportunity cost show trade offs at societal level, for example, if the country produce two goods, then it can't produce more of one good without producing less of another good.

Production possibility curve will shift, if there is the change in number of inputs available, change in technology, significant weather changes etc.