Question

Points outside the PPC are _________.

• A. attainable with the existing technology
• B. not attainable with the existing resources and technology
• C. inefficient
• D. suggest that the country's factors are underemployed

Answer 1

The correct option is B not attainable with the existing resources and technology

Production possibility curve shows the different combinations of the production of two commodities that can be achieved in an economy given the resources and technology which are to be fully utilized. Therefore to achieve any point beyond PPC, there is need for increase in the present supply of resources and technology. Thus points outside the PPC curve cannot be attained with the existing resources and technology.