Question

7. How is production possibility frontier affected when resources are inefficiently employed in an
economy?
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Answer 1

Production possibility frontier is drawn on the assumption that the given resources and technology are fully as well as efficiently utilized. so if resources are inefficiently utilized in an economy, it implies that the economy is not maximizing its output with the given resources.

Answer 2

$\huge\red{Answer}$

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☆☞ [ Verified answer ]☜☆

A production possibility frontier is used to illustrate the concepts of opportunity cost, trade-offs and also show the effects of economic growth.

A country would require an increase in factor resources, an increase in the productivity or an improvement in technology to reach this combination.

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