ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Production Possibilities Curve (PPC) is a model that captures scarcity and the opportunity costs of choices when faced with the possibility of producing two goods or services. Points on the interior of the PPC are inefficient, points on the PPC are efficient, and points beyond the PPC are unattainable.

Detailed explanation-2: -A point outside the PPC is an unattainable point. The unattainable point indicates that the economy needs more resources and the PPC needs to shift outwards in order to make the point attainable.

Detailed explanation-3: -Point outside the production possibilities curve represents a combination of goods that is unattainable. This means an inefficient use of resources.

Detailed explanation-4: -The production at a point outside the production possibilities curve is not currently possible. A future advance in technology can help the economy to produce beyond the current production possibilities curve. Only international trade can allow the economy to consume beyond its current production possibilities curve.