Answer to Question #88434 in Microeconomics for Njabulo Mabhida

Question

Discuss the the factor that would lead to an outward shift of the PPC of Lecturer and Carpentry
and discuss a factor that could lead to an inward shift of the curve.

Answer 1

The outward shift of the curve can happen in case of overall rise in the economy or significant decrease in labor supply, which will cause the increase in the wage rates.

The inward shift of the curve can happen in case of overall decline in the economy or significant increase in labor supply, which will cause the decline in the wage rates.