SSC MTS EXAM

SSC

GENERAL ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A point above the PPF curve represents
A
efficiency
B
inefficiency
C
Unemployment
D
Unattainable
Explanation: 

Detailed explanation-1: -Conversely, any point outside the PPF curve is impossible because it represents a mix of commodities that will require more resources to produce than are currently obtainable.

Detailed explanation-2: -Any point beyond the PPF that is not attainable is called the unattainable combination. With the given amount of available resources, it is impossible for the economy to produce any combination more than the given possible combinations i.e. an economy can never operate at any point outside the PPF.

Detailed explanation-3: -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.

There is 1 question to complete.