What will be the impact of recently launched 'Clean India Mission' (Swachh Bharat
Mission) on the Production Possibilities curve of the economy and why?
Or

What will likely be the impact of large scale outflow of foreign capital on Production
Possibilities curve of the economy and why?

Production possibility curve is a graphical representation of the maximal mix of outputs
that an economy can achieve using its existing resources to full extent and in the most
efficient way. The mission of 'Clean India Mission' (Swachh Bharat Mission) will lead to
better waste-management technique. Consequently it leads to healthy India and increased
individual productivity. Both these factors will lead to better and efficient utilisation of
existing resources of an economy. Accordingly, the economy will move higher and closer
to initial PPC. This movement is being depicted in the below graph with the help of the
arrow from point P.

OR

The large scale outflow of foreign capital will lead to a decrease in the availability of
resources, thereby shifting the Production Possibility Curve (PPC) from right to left that is
from AB to CD as shown in the following diagram. Hence, we can say that leftward shift of
PPC results in fall in output and resources.