Question

what does a point below and above the PPC indicate? explain using suitable diagram
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Answer 1

Answer:

The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable.

Answer 2

Answer:

Any point along the PPC shows efficiency, that is, resources are allocated effectively, as there is a choice where there is the element of foregone. Any point inside the PPC indicate inefficient allocation of resources which means resources are underutilized. Any point outside the curve indicate that resources are unattainable, a person or business cannot reach that point, which means the concept of scarcity is shown.

Explanation:

This is how I have addressed the question