ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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inside; on; outside
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outside; on; inside
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on; inside; outside
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inside; outside; on
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Detailed explanation-1: -Only points on or within a PPF are actually possible to achieve in the short run. In the long run, if technology improves or if the supply of factors of production increases, the economy’s capacity to produce both goods increases; if this potential is realized, economic growth occurs.
Detailed explanation-2: -The point of PPF that are attainable are called the attainable combinations. The points inside and on the PPF are attainable for the firm. The points that lie inside the PPC means that the actual production is falling short of its capabilities and there is a wastage or inefficient utilization of resources.
Detailed explanation-3: -The points which are placed on the PPF curve mean that those are the most efficient points where resources are allocated. However, the points outside the PPF mean that the output is unattainable due to lack of resources, and the points inside the PPF mean that the output is inefficient.
Detailed explanation-4: -Points outside the PPF such as point G are unattainable. We can produce at any point inside the PPF or on the frontier. Full employment occurs when all the available factors of production are being used. Unemployment occurs when some factors of production are not used.