Production Possibility Curve - An Application

Application of Production Possibility Curve

Class 11 and Class 12

Micro Economics

Rapid ride: From Sarai Kale Khan to Aerocity in about 15 minutes

While Delhi Metro connects Gurgaon to the capital, many industrial towns beyond Gurgaon, which have been witnessing a growth in housing too, don’t have a fast and convenient mode of connecting transport. The RRTS corridor is expected fill this vacuum.

“Once these lines become operational, commuting to major points, such as the airport, will become easier. For instance, the Delhi-Gurgaon SNB link will originate at Sarai Kale Khan and reach Aerocity within 15 minutes. 

Similarly, travelling from Aerocity to Rajiv Chowk in Gurgaon will take 15 minutes,” said Sudhir Kumar Sharma, CPRO, NCRTC. “Older Gurgaon will be connected with this high-speed network and people can reach the airport in 10 minutes,” he said.

The above news article was published in the Times of India and it talks about the development of infrastructure

Explain how will it affect the Production Possibility Curve

Answer

As their is development of infrastructure ( transport ) it will help to develop employment opportunities in the way of labour mobility so we will move from inefficient use of resources to efficient use of resources 

As shown in the diagram we will move from point E inside the PPC to any point on the PPC