The production possibility curve shows all the possible sets of maximum production of two goods when inputs are limited and allocated between them. Comparative advantage is ability of being better in production of one good in comparison to others.
The interior of a production possibility curve represents an area where the production of good is done below the potential i.e. the input resources are underutilized. Therefore, if resources are utilized efficiently and with reasoning then the production point will lie on the circumference of the production possibility curve. But, to say that if everyone use reasoning then it would be impossible to produce below production possibility curve is wrong because there are other factors as well which affect productivity like legal, social and political issues, uncertainties and accidents, etc.
The production possibility curve shows all the possible sets of maximum production of two goods when inputs are limited and allocated between them. As per the principal of increasing marginal opportunity cost, when production of a good increases then the opportunity cost also increases with every additional unit produced.
It is given that there are two goods produced in the economy i.e. widgets and wadgets. Now the production of widgets as well as wadgets increases because of increased productivity. Show in the graph below, the shifting of the production possibility curve as per the given conditions, as follows: The production possibility curve above represent the shifting of production possibility curve to its right because of increase in overall productivity of the economy i.e. same level of inputs will produce now more outputs.
All the resources are scarce and have limited availability. Economics is study of allocation of resources and it also tries to answer the three basic questions of what to produce, how to produce and for whom the product is produced.a.Most of the jobs today as well are routine jobs where the person keeps on doing same work for days after days. But there are two opposite opinion regarding this approach, one says that it decreases productivity and makes workers smart, while the other opinion which is more popular today, says that repetition of work makes individuals specialized in that job which make them specialized in production and increases productivity and also increases skill and knowledge in that part of process.
b.The policies today are made to secure jobs of individuals which would help people retain their jobs and there is no rule about rotation of jobs so it can be said that even policy also supports the specialization of work today in comparison to job rotation.