Question

If an economy is operating inside the PPC, it is possible to increase the production of Good - $1$ without any decrease in the production of Good - $2$.

• A. True
• B. False

Answer 1

The correct option is A True

If an economy is operating inside the production possibility curve, it means that the resources and technology are not fully utilized and there are some resources left which can be utilized for further production. Therefore, production of any commodity from the two commodities can be increased without any decrease in the other.