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Mao Zedong was very concerned about the purity of the ideology rather than the support of the Soviet Union bringing instability and economic crisis. This particular policy cannot marge to the product possibility curve assumptions that,
Economy to produce two or more good, full employment of resources is assumed,time period is given and constant and factors of productions are given and constant. when it comes to specialization , it worked but considering the amount of .....................................................continuing, just a minute pleasePlease let me know if you need any clarification. I'm always happy to answer your questions.
it worked but considering the amount of task force which was employed didn't encourage other industries to grow leading to a small per ca pita, the agriculture sector which was the main economic driver grew in a slower rate because it didn't have the necessary technology that would maximize the output and minimize the input. Specialization in farm led to slow growth of other sectors.
Concerning the product possibility curve (ppc) .its evident that China all available task force was utilized not considering the consumption and also the relationship between different combination of goods produced. Some goods will be produced less and others more depending on the available resources . Due to the increased opportunity cost of consumer goods an economy increase capital goods production rather than consumer goods. If all the available resources are allocated to produce capital goods, an economy can produce capital goods , people will suffer because it will affect consumption.
This particular policy can lead to high production of consumer goods rather than capital goods which helps and balances the output in different sectors in the economy. I will predict the policy to reduce in output of other important sectors in the economy.
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