Question

With fuller utilisation of resources, an economy can shift to a point beyond PPC.

• A. True
• B. False

Answer 1

The correct option is B False

Production possibility curve shows all the different attainable combinations of production of two commodities that can be achieved in an economy with the given resources and technology, which are to be fully utilized. Therefore, an economy operating on any point on the PPC represents full employment of available resources.