Question

Does production possibility frontier indicate the actual or potentail level of output

Answer 1

$\bf{Production \ Possibility \ Frontier}$ indicates both actual and potential level of output.

When there is fuller as well as efficient utilisation of resources then the economy moves on PPC curve. Otherwise when there is underutilisation or inefficient utilisation of resources then the economy would be under the PPC curve.

Answer 2

Answer:

$\large{\underline{\underline{\textsf{\maltese{\red{answer}}}}}}$

production possibility frontier indicates both actual and potential level of output.

When there is fuller as well as efficient utilisation of resources then the economy moves on PPC curve. Otherwise when there is underutilisation or inefficient utilisation of resources then the economy would be under the PPC curve.