Question

- ppc on the basis of market economy and centrally planned economy. * what kind of ppc can be used in indian economy​

Answer 1

The nature of basic economic problems can be better understood and distinguished from each other with the aid of an important tool of modern economics known as production possibility curve.

Production possibility curve is also called the production possibility frontier.

Production possibility curve (frontier) is a graphic representation of alternative production possibilities facing an economy. As the total productive resources of the economy are limited, the economy has to choose between different goods. The productive resources can be used for the production of various alternative goods. It has, therefore, to be decided which goods are to be produced more and which ones less..