2. Index
1. Acknowledgement
2. Introduction
3. Effect on PPC due to GST
4. Effect on PPC due to Demonetisation
5. Effect on PPC due to Clean India mission
6. Effect on PPC due to Skill India mission
7. Effect on PPC due to Massive unemployment
8. Effect on PPC due to Digital Mission
3. ACKNOWLEDGMENT
I feel highly privileged and honoured in making the project on EFFECT ON
PPC DUE TO VARIOUS GOVT. POLICES. I express my sincere gratitude
to my teachers, parents and my friends for their kind cooperation for
preparing this project. My special thanks to my teacher MISS NIKITA
MAM for her continuous support and encouragement that led to the
development of this material. I would also like to thank our principal MRS.
ANITA BHALLA mam for her caring and encouraging attitude towards us.
I look forward to recieve valuable suggestions from teachers, students.
Thank you
4. INTRODUCTION
Production possibility curve is a diagrammatic representation showing
alternative production possibilities of to goods with the given resources
and technique of production it is also called production boundary Or
production Frontier as it shows the maximum possible production with
the given resources.
It is also called transmission line or Transformation curve because it
indicates that if more of good-X is to be produced then factors of
production will have to be withdrawn from the production of Good – Y
and transfer to the production of good-X. In other words good-Y is
transformed into good-X it refers to a
5. Diagrammatical representation showing various
combinations of two goods which can be produced within
given resources and Technology.
For example suppose an economy decides to produce only
two goods namely, wheat and cloth with its available
resources and given Technology if all the resources are used
for the production of wheat alone than 100 lakh tonnes of
wheat can be produced on the contrary if all the resources
are used for the production of cloth alone than 4000 bales of
cloth can be produced if the economy produces both the
good then within these limits, various combinations of two
goods can be produced
PPC can be shifted rotated in certain conditions.
1. If resources are increased or decreased the PPC shifts
6. 2. If techniques is improved the PPC shifts or gets rotated.
EFFECT OF GOVERNMENT POLICIES:-
There can be a good effect or bad effect of different
government policies on PPC. It is based on which policies will
make production more or which will make production less.
Due to different policies of government the PPC can be
shifted rightwards or leftwards it can also be rotated if
technique will be improved due to certain policies.
7. EFFECTS DUE TO GST
Production possibility curve will undergo a rightward shift. The reason for
that is:-
goods and service tax has an edge over the erstwhiles indirect taxation
system with regards to input tax credit. Previously while tax calculation
the tax payer got input Credit only for the excise service and VAT
production it means if CST, customs or any other indirect taxes are
payable during sale no credit On such taxes could be set off against The
similar taxes paid during purchase of inputs for production. Unlike it, GST
has optimal provision for availing input tax credit, which has made
8. GST cost effucient. Consequently, capital goods became
cheaper than before causing multi-fold increase in
domestic as well as foreign direct investment this has
increase the production possibility curve the statement
of an increase in investment is backed by the post GST
statistical evidence of gross fixed capital formation that
increase from 1.6% in quarter 1 To 4.3% in quarter 2
In short run the point will shift inside PPC because of the
removal of taxes and supplier will decrease production
in long run there will be an increase in foreign
investment which woUld Increase GDP and PPC will shift
to the right.
9. EFFECTS DUE TO
DEMONETISATION
All the points on the PPC dePict Efficient outcomes that is we
are reducing exactly the amount which can be produced by
the fixed number of resources but that’s an ideal case
We are obviously inside the area of feasible but inefficient
outcomes because it’s very difficult to have all the outcomes
as efficient.
• There are two scenarios
1. in short run since the society was depending on cash for
a long time,
10. There purchasing power decreases because of
demonetisation decreases industries which cannot change
there supply immediately will have inelastic supply and
some other will have a bit elastic relative to to others overall
it will be a less efficient outcome compared to previous one.
2. In long run however the growth rate will increase because
society will be moving towards a cashless society which
will lead to more buying hence more production. The
production will Definitely increase in the long run.
Moreover, better Technology can also come in the long run
positively reinforcing the effect to the about in long run.So in
long run the outcome is expected to move Rightwards.
11. EFFECTS DUE TO CLEAN INDIA
MISSION
PPC in the long run shift right words thereby expanding the
the economy due to increase employment higher demand,
more foreign currency inflow from tourist, better picture of
India in the world, higher ranking, multiplier effects etc.
There are two types of resources human resources and
physical resources clean India mission will obviously have a
positive impact on our society as it will lead to increase
efficiency in human resource.
12. Eco-friendly environmental conditions and sanitation will
enhance the quality of human resource and will increase
productivity and the overall output.
Hence it will lead to to a rightward shift in PPC curve of the
country.
13. EFFECTS DUE TO MAKE IN
INDIA
Government make in India campaign Aims at transforming
the country into a global manufacturing Hub and has already
made tremendous impact on the investment climate as
evidenced by the growth in foreign direct investment.
So when Investments increases by make in India campaign it
will make PPC shift right word as production will increase it
represents economic growth.
Economic growth is an increase in what an economy can
produce if it is
14. Using all its starts resources an increase in an economics
productive potential can be shown by and outward shift in
The Economys production possibility curve.
On micro level if make in India goes well then it will increase
in employment rate more quantity of supplied goods lower
prices for consumers multiplier boost to economy Etc.
15. EFFECTS DUE TO SKILL INDIA
MISSION
Skill development programs like skill India Are aimed at human
capital formation that is is it increases the capacity and skill of
human resources.
Show with the same amount of resources we can produce more
goods and services in the economy due to to improve skills.
Suppose you have an unskilled worker from Village if you train that
person on productive jobs skill India then he walks in a more
efficient manner then before and can produce more Goods and
services with his
16. Improve skills and hence it promotes economic growth.
When we improve the skills off existing Workforce
productivity increases economic growth happens and PPC
shift right words.
17. EFFECTS DUE TO
UNEMPLOYMENT
Massive unemployment in a country will be reflected on go
PPC as underutilization of resources are lying idle when they
could have been used for some productive purposes like
farming Manufacturing Etc.
Massive unemployment is a situation of Wastage Human
resources which means there is an under utilization of
resources and in this case PPC will not shift anywhere but
this point lies within the PPC.
18. EFFECTS DUE TO DIGITAL
INDIA
DigitAl India programme will lead to Improvement in
technology better technology in the sense of improved
online infrastructure and internet connectivity will increase
the production capacity of the economy accordingly the PPC
will shift to Right. Impact of demonetization in India effect
PPC off India in short term PPC off India shift to left words in
India everyone is not aware about internet banking of online
payment people Face Money problem and do not use fully
utilized resources in short period. It’s cause PPC shift to left
words.
19. CONCLUSION
Therefore, all the government policies have some what effect
on PPC which can make it shift right words or leftward. We
can used various government policies to make production
easier faster and greater.
Policies like GST skill India mission clean India mission hElp
the PPC To rise and generate production of goods.
20. BIBLIOGRAPHY
The information of the topic is taken from:
1. Qoura.com
2. Google.com
3. Meritnation.com
And from the book prescribed by cbse i.e. Introductory
microeconomics.
