A production–possibility frontier (PPF)

or production possibility curve (PPC) is a curve which shows various combinations of the amounts of two
goods which can be produced with the given resources and technology/a graphic representation showing all
the possible options of output for two products that can be produced using all factors of production, where the
given resources are fully and efficiently utilized per unit time. A PPF illustrates several economic concepts, such
as allocative efficiency, economies of scale, opportunity cost (or marginal rate of transformation),
productive efficiency, and scarcity of resources (the fundamental economic problem that all societies face).[1]
In microeconomics, the PPF shows the options open to an individual, household, or firm in a too good world. By
definition, each point on the curve is productively efficient, but, given the nature of market demand, some points
will be more profitable than others. Equilibrium for a firm will be the combination of outputs on the PPF that is
most profitable.[2]
From a macroeconomic perspective, the PPF illustrates the production possibilities available to a nation
or economy during a given period of time for broad categories of output. It is traditionally used to show the
movement between committing all funds to consumption on the y-axis versus investment on the x-axis.
However, an economy may achieve productive efficiency without necessarily being allocatively efficient. Market
failure (such as imperfect competition or externalities) and some institutions of social decision-making (such as
government and tradition) may lead to the wrong combination of goods being produced (hence the wrong mix
of resources being allocated between producing the two goods) compared to what consumers would prefer,
given what is feasible on the PPF.[3]

GST
Production Possibility Frontier will undergo a rightward shift. The reason for that is explained here under
in detail :

Goods & Services Tax (GST) has an edge over the erstwhile 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 portion. It means if CST, Customs or any other indirect taxes are payable during sale, no credit on
such taxes could be setoff 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 efficient.
Consequently, capital goods became cheaper than before causing multifold increase in domestic as well as
Foreign Direct Investments. This has increased the production potential causing a rightward shift in the
Production Possibility Frontier (PPF). The statement of an increase in investments is backed by the post
GST statistical evidence of GFCF (Gross Fixed Capital Formation) that increased from 1.6% in Quarter I
(Before GST) to 4.3% in Quarter II (Post GST)

In the short run, the point will shift inside the PPC because of the removal of indirect taxes and supplier
will decrease production.

In the long run there will be an increase in foreign investment which would increase GDP and the PPC will
shift to the right.
Production Possibility Curve (PPC) shows the different combinations of production possibilities of the
economy given its stock of resources and technology. It is the maximum that an economy can produce of
its stocknof resources and production technology remain unchanged.

So, here GST has not altered any of the above two criteria. It is just a method of indirect taxation and does
not alter production technology or resources of the economy.

DEMONITIZATION
In the short run, our actual position within ppc might go backwards because demonetization has
resulted in reduced cash in hand. So possibly, the investment will decline and so will the
consumption as MPC(marginal propensity to consume) will fall. This might result in reduced
production in the short run.

However, in the long run, if the economy turns cashless, both our production and consumption
will rise. Thus our gdp or economic growth would boost. This will improve india’s reputation in
the international arena and so there might be increased FDI in the country. This might lead to a
rightward shift in PPC.

CLEAN INDIA(SWACHH BHARAT ABHIYAN)

Straight answers : PPC or the Production Possibility Curve will in the long term shift righwards
thereby expanding the economy due to increased employment, higher demand, more foreign
currency inflow from tourists, better picture of India in the world, higher rankings, better
ratings, multiplier effects, etc.

But how long? Very difficult to even beginning to comprehend a timeline. Right now, the Swach
Bharat is struggling to survive and we do not know if it will. Namami Gange's, another flagship
programme, fate is also in the balance. And even if we are to assume tomorrow these and many
more such programmes become 100% efficient, then too it will take years alstogether to see even
the slightest of results.

But that does not mean they are useless. They are possibly the more critical at this hour, the call
of time and economic benefits aside, we have to look at ecological benefits and survive as a
civilization.

SARVA SIKSHA ABHIYAN

Sarva Shiksha Abhiyan implies "Education for all" campaign. Imparting everyone education will
lead to human capital formation. As a result of which production potential of our country will
increase (in future). Thereby, shifting PPC towards right