Question

Importance of production possibility curve in economics

Answer 1

Answer:

Scarcity and Resource Allocation:

Production possibility frontier or curve is an important concept of modern economics. ... Thus, the basic economic problem is that, in view of the scarcity of resources, at what point of the production possibility curve, the economy should produce so as to maximise social welfare.

Answer 2

Answer:

Production possibility frontier or curve is an important concept of modern economics. ... Thus, the basic economic problem is that, in view of the scarcity of resources, at what point of the production possibility curve, the economy should produce so as to maximise social welfare.