Question

A construction company plans to build a certain number of apartment buildings and stores on a piece of land. This PPC shows the combination of projects it can build
1) If the amount of land available to the company increases, the PPC will _____.
a) Shift to the left
b) Shift to the right
c) remain unchained

2) The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in. In this case, the PPC will _____.
a) Shift to the left
b) Shift to the right
c) remain unchained

Answer 1

1. b) Shift to the right

2. c) Remain unchainged

Answer 2

Answer 1) Option B) Shift to the right.

Explanation : If the amount of land available to the company increases, the PPC will shift to the right. As the graph indicates, the PPC will grow by shifting on right side as the company is acquiring more land for building purpose.

Answer 2) Option C) Remain Unchanged.

Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.

In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.