Question

Draw a possibility curve showing a) full employment, b) under employment, c) unattainable employment level?

Answer 1

Explanation:

Any point on PPF (point A to D) or any point inside PPC (point E) are attainable combination.

Any point outside PPF (point F) is an unattainable combination.

If the resources are used in the best possible manner, then economy will operate at any point (like,A, B, C, or D) on PPF.

the actual production can fall short of its capabilities. If there is wastage or inefficient utilisations of resources, then economy will operate at any point inside the PPF (like E).