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1. ECONOMICS PROJECT Effects on PPC due to various Government policies By- Huzefa Amin

2. Index Acknowledgement Introduction Effect on PPC due to GST Effect on PPC due to Demonetisation Effect on PPC due to Clean India mission Effect on PPC due to Skill India mission Effect on PPC due to Massive unemployment Effect on PPC due to Digital Mission

3. 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curve because it indicates that if more of good-X is to be produced then factors of production will have to be withdrawn from the production of Good – Y and transfer to the production of good-X. In other words good-Y is transformed into good-X it refers to a

4. 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. If resources are increased or decreased the PPC shifts If techniques is improved the PPC shifts or gets rotated.

5. 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 .

6. 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

7. GST cost efficient. 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 .

8. 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 in short run since the society was depending on cash for a long time , 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.

9. 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 .

10. 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 . 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 .

11. 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 Using all its starts resources an increase in an economics productive potential can be shown by and outward shift in The Economies 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

12. EFFECTS DUE TO SKILL INDIA MISSION Skill development programs like skill India Are aimed at human capital formation that 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 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 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 .

13. 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.

14. 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 .

15. BIBLIOGRAPHY The information of the topic is taken from: Qoura.com Google.com Meritnation.com And from the book prescribed by cbse i.e. Introductory microeconomics.