The production possibility curve is not used for which of the following purposes?

Knowledge of economic efficiency.

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Distribution of nation's resources.

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Choice of techniques of production.

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Demand-supply analysis.

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Solution

The correct option is A Demand-supply analysis.
Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. Therefore, it has nothing to do with market mechanism i.e. demand-supply analysis.

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Similar questions

Which of the following is an assumption of Production Possibility Frontier?

i) Resources are not fully employed.

ii) Resources are not equally efficient for production of the two goods.

iii) Resources are not efficiently employed.

iv) Resources available are not fixed.

Which of the following is an assumption of Production Possibility Frontier?
(i) Resources are not fully employed.
(ii) Resources are not equally efficient for production of the two goods.
(iii) Resources are not efficiently employed.
(iv) Resources available are not fixed.

Q. Draw a production possibility curve and indicate Fuller and efficient utilisation of resources.

Q. Use the figure to answer question.
Which point on the Production Possibilities Curve show full and efficient use of resources?

Q. Who used the concept of the production possibility curve to explain the economic problem of a society?

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