Question

draw+production+possibility+curve.what does a point below this curve indicate

Answer 1

the production possibility curve represents the possible combinations of two goods that can be produced in an economy with the given resources and technology.

when MRT is increasing , the PPC curve will be concave to the origin

when MRT is comstant , the PPC cuve will be a downward sloping straight line.

when MRT is decreasing , the PPC cuve will be convex to the origin.

any point below the PPC curve is called point of underutilisation , as resources are not utilised to its full extent