Question

. Draw a Production Possibility Curve and represent the following on it: (2)

a. underemployment of resources

b. optimum utilisation of resources​

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.

solution