ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The production possibilities curve illustrates the maximum possible output for two products when there are limited resources. It also illustrates the opportunity cost of making decisions about allocating resources.

Detailed explanation-2: -Market Economies A market economy is an monetary system where two forces, supply and demand, direct the production of goods and services.

Detailed explanation-3: -Economic efficiency is a measure of how well a market or the firms within it are performing. There are various different aspects of efficiency. Production efficiency (also referred to as technical efficiency) occurs when a firm produces a given output at the lowest unit cost of production given the technology employed.

Detailed explanation-4: -Technical efficiency happens when there is no possibility to increase the output without increasing the input. Economic efficiency happens when the production cost of an output is as low as possible. Economic efficiency mainly depends on the prices related to the factors of production.