Index

1. Acknowledgement
2. Introduction
3. Effect on PPC due to GST
4. Effect on PPC due to Demonetisation
5. Effect on PPC due to Clean India mission
6. Effect on PPC due to Skill India mission
7. Effect on PPC due to Massive unemployment
8. Effect on PPC due to Digital Mission

ACKNOWLEDGMENT
I feel highly privileged and honoured in making the project on EFFECT ON
PPC DUE TO VARIOUS GOVT. POLICES. I express my sincere gratitude
to my teachers, parents and my friends for their kind cooperation for
preparing this project. My special thanks to my teacher MR.HARDEEP SIR
for his continuous support and encouragement that led to the development of
this material. I would also like to thank our principal MRS.SHABANA
REHAN mam for her caring and encouraging attitude towards us. I look
forward to recieve valuable suggestions from teachers, students.
Thank you

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be withdrawn from the production of Good – Y and transfer to the production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
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 thegood then within these limits, various combinations of two
goods can be produced PPC can be shifted rotated in certain conditions.
1. If resources are increased or decreased the PPC shifts
2. If techniques is improved the PPC shifts or gets rotated.

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.

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 GST cost effucient.
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 shiftto the right.

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-:
1. 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.
2. 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.

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

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 Economys 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.

EFFECTS DUE TO SKILL INDIA MISSION

Skill development programs like skill India Are aimed at human capital
formation that is 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 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.
 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 .
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.

CONCLUSION
Therefore, all the government policies have some what effecton PPC which can
make it shift right words or leftward. We can used various government policies
to make production easier faster and greater. Policies like GST skill India
mission clean India mission hElp the PPC To rise and generate production of
goods.

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