Paper Topic:

Could a nations production possibilities frontier ever shift inward? discuss whatever might cause such a shift to occur.

While it is uncommon , it is not impossible for the PPF of a country to shift inwards . Such an event occurs when the production capacity of a country diminishes due to a decrease in the factors of production . War is a common reason for a country 's PPF to shift inward as the fighting destroys factories and infrastructure . Generals may even target industrial centers with the purposeful intent of reducing an enemy state 's capacity to produce . The loss of production capacity is most evident in cases where war has ravaged the population

enough to cause widespread famine in the affected population . This has happened during the siege of Leningrad in World War II as the German lines prevented food and other supplies from getting into the city . Put in economic terms this loss of production inputs has reduced the city 's PPF to nearly zero ( The Siege of Leningrad

Apart from loss of capital structures , loss of manpower may also lead to an inward shift of the PPF . One phenomenon by which this could happen is through brain drain - the flight of individuals with unique technical skills from a particular country . In India for example , 78 of mechanical , electrical , civil , instrumentation , and chemical engineers are not working in their respective fields , choosing instead to work abroad or in India 's business process outsourcing companies . The effect of this on India 's workforce is undeniable as the country 's technical industries face a shortage of qualified employees (Dubey , 2004

Bibliography...

1 pages

28.5 KB

Free sing-up