Question

if the resources are not fully employed will there be any impact on the PPC graph ??​

Answer 1

Explanation:

Individuals are limited in what they can buy because the resources available to them are limited. The societies and countries too are limited in what they can produce with the given amount of resources. Production possibilities curve is a graphical representation of a combination of two goods that a country can produce with a given amount of resources.

Production possibilities curve demonstrates that:

There is a limit to what the society/individual can achieve, given the existing institutions, technology and resources.

Every choice the society/individual makes has an opportunity cost – to get more of one good, we need to give up some of another good – every choice has a tradeoff.

Let’s assume that a country can produce either 15000 units of bags of wheat or 15000 units of guns or a combination of two goods with the full employment of all its available resources. The following production production possibilities table shows possible combinations of this country.