Question

Defend or refute with reasons

1) “An economy always produces on but not inside a PPC.”

2) PPC shows decreasing slope

3) If the economy is operating somewhere inside PPC, it is possible to increase

production of one commodity without any decrease in the production of another

commodity​

Answer 1

Answer:

1. The statement is refuted because it is not essential that an economy always produces on PPC. It is bound to produce inside a PPC when its resources work inefficiently or resources are underemployed

2. fuller utilization of given resources, production of both the goods cannot be increase