Which of the following factors will NOT account for an outward shift of production possibility curve?

Step 1: Analyze the question We are asked which factor will NOT cause an outward shift of the Production Possibility Curve (PPC).

Step 2: The concept The PPC shows the maximum combinations of two goods an economy can produce using all its resources efficiently. The curve shifts outward only when the economy's productive capacity grows. This happens through:

• An increase in the quantity of resources (land, labour, capital)
• An increase in the quality of resources (education, training)
• Improved technology

Step 3: Check each option

• A. Budgeting and planning based on expectations: Planning and budgeting do not directly add resources or improve technology. They are about how resources are allocated, not about the economy's capacity, so they do not shift the curve by themselves.
• B. Expansion in employment: This is the tricky one. Strictly, moving from unemployment to full employment moves the economy from a point inside the curve to a point on it, which is not a shift. However, expansion in employment is often interpreted as a growing labour force/more workers, which does increase capacity. It is also the only option that is arguably ambiguous, but it is less clearly unrelated than A.
• C. Discovering new resources: This increases resource quantity, so the curve shifts outward.
• D. Improved production techniques: This is a technological improvement, so the curve shifts outward.
• E. Skill improvement through education and training: This raises labour quality, so the curve shifts outward.

Step 4: Conclusion Options C, D and E clearly shift the PPC outward. Between A and B, option A has no direct effect on productive capacity, while B can at least be linked to a larger labour force. So the best answer is the one that does not account for an outward shift: A.

Tip: For PPC questions, ask: "Does this increase the quantity or quality of resources, or technology?" If yes, the curve shifts outward. If it only concerns using existing resources better (employment of idle resources, planning), it moves a point, not the curve.