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Question

Any point beyond PPF curve can be attained by _______.

A
increasing supply of factor inputs
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B
technological innovation
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C
both (A) and (B)
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D
none of the above
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Solution

The correct option is C both (A) and (B)

The points beyond the PPF curve are unattainable combinations. These points cannot be achieved by existing resources. Thus, any point beyond PPF curve can be attained by increasing supply of resources or factor inputs or by technological innovation with respect to both the goods.


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