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Question

Use the figure given to answer question:
Which combination of goods cannot be produced with the resources the country has?
954624_f5a1b19882324e1baa196bc57012a0f0.png

A
Point R
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B
Point A
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C
Point B
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D
Point S
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Solution

The correct option is C Point R

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. So any point that lies beyond the production possibility curve like Point R cannot be achieved with the provided resources and technology.


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