For labourers working under MGNREGA Govt has increased minimum employment from 100 to 150 days. How will this affect real and potential level of production.

Solution

Real level of production will be increased by improvement in employment. But potential level of production will not increase (No shifting of PPC will take place). Reason being PPC is based on the assumption that available resources are fully utilised.

Some More Questions From Introduction Chapter

Explain central problems with the help of PP curve. How does PP curve help in explaining the central problems?

(i) Why is PP curve downward sloping from left to right? (D 2006C)

(ii) Why does PP curve look concave to the origin?

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Introduction

For labourers working under MGNREGA Govt has increased minimum employment from 100 to 150 days. How will this affect real and potential level of production.

Some More Questions From Introduction Chapter

Explain central problems with the help of PP curve. How does PP curve help in explaining the central problems?

(i) Why is PP curve downward sloping from left to right? (D 2006C)

(ii) Why does PP curve look concave to the origin?

Can the PP curve shift?

State factors which cause rightward (upward) shift of PP curve.

How is PPC affected by unemployment in the economy? Explain.

Massive unemployment shifts the PPC to the left. Defend or refute.

What is meant by resources?

What do you understand by the term 'individual' in economics?

What is meant by goods?

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

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For Daily Free Study Material Join wiredfaculty

Introduction

For labourers working under MGNREGA Govt has increased minimum employment from 100 to 150 days. How will this affect real and potential level of production.

Some More Questions From Introduction Chapter

Explain central problems with the help of PP curve. How does PP curve help in explaining the central problems?

(i) Why is PP curve downward sloping from left to right? (D 2006C) (ii) Why does PP curve look concave to the origin?

Can the PP curve shift?

State factors which cause rightward (upward) shift of PP curve.

How is PPC affected by unemployment in the economy? Explain.

Massive unemployment shifts the PPC to the left. Defend or refute.

What is meant by resources?

What do you understand by the term 'individual' in economics?

What is meant by goods?

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

(i) Why is PP curve downward sloping from left to right? (D 2006C)

(ii) Why does PP curve look concave to the origin?