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Question
What is likely to be the impact of "Make in India" appeal to the foreign investors by the Prime Minister of India, on the production possibilities frontier of India? Explain
Solution
The Make in India appeal implores foreign producers to produce in India. This will increase the level of resources and lead to an increase in the country’s production potential. Therefore, the production possibility curve will shift to the right as shown in the below diagram, i.e. the production possibility curve shifts from the initial curve AB to the final curve CD.
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