Question

8. Draw a P.P.C and indicated the following situations on the diagram. [6]

1. Fuller and efficient utilization of the recourses.

2. Under utilization of resources.

3. Un- attainable combination.

class11​

Answer 1

Answer:

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. Therefore, all the points on that blue curve indicates fuller and efficient utilization of resources.

Explanation:

Answer 2

Answer:

Explanation:

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. Therefore, all the points on that blue curve indicates fuller and efficient utilization of resources.