Name the situation reflected by an economy which produces a combination of goods that lie below its production possibility curve.

Over-utilisation

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Under-utilisation

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Utilisation

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None of the above

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Solution

The correct option is B
Under-utilisation

Under-utilisation implies that either some of the resources are idle or not used efficiently.

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Similar questions

Explain the problem of fuller utilisation of resources with the help of the production possibility curve.

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