Answer the elaborate part!

Shifts in the PPC 1. Changes in resource availability - an increase in the availability and quality of resources would entail an outward shift of the PPC. 2. Increases in the capital stock - the more capital (human and physical) an economy produces in one period, the more output that capital can produce in the next period. 3. Effects of technological change - another cause for the PPF to shift out is some technological discovery that combines available resources more efficiently. 6 Module 3 Microeconomics (a) increase in available resources (b) decrease in available resources F' FMicroeconomics (a ) increase in available resources (b ) decrease in available resources F F F" V Food Food Education E E' Education E" E (c) technological advance in food production (d ) technological advance in education production F' F 7 F 7 7 Food Food Education E Education E E' Figure 2. Shifts in the Production-Possibility Curve (PPC)approaches to Extending Production Possibilities It Specioiizotion occurs when people concentrate their efforts on a particular set of tasks. It permits each person and country to use to best advantage any peculiar skills and resources. Specialization is also a principle that compels nations to trade with one another. in tow ofComporotive Advantage states that the individual with the lowest opportunity cost for producing a particular output should specialize in producing that output. It also implies the ability of a country to produce the output with fewer resources than other producers use. TlMudulc 3 Microeconomics it tow ofAbsoiute Advantage can be applied when one country produces a good that other countries are not able to do so. in international Trade takes place because of the various goods produced by different countries. The production of such goods is dependent on the resources that the different countries possess. Microeconomics 4 Law of Absolute Advantage can be applied when one country produces a good that other countries are not able to do so. International Trade takes place because of the various goods produced by different countries. The production of such goods is dependent on the resources that the different countries possess. Elaborate: Following the graphs on figure 2, give a concrete example of a shift in a PPC, and explain how the shift occurs and what caused the shift. For example: () imere age in available resources Given a funding of Php 20 million, a country can produce quantities of food and F education found in the original PPC curve FE. An increase of funding to Php 30 million expands the production of food and education to PPC F'E'. The shift of the PPC Food to the right is caused by an increase in available resource, particularly of the Education E E' funding