QAEconomics › On a production possibility curve, data points that fall outside of the curve represent
Q

On a production possibility curve, data points that fall outside of the curve represent

a) an inefficient allocation of resources.

b) a balanced allocation of resources.

c) ideal production.

d) a currently unattainable production.

A

Data points that fall outside of the production possibility curve represent a currently unattainable production – choice D. Usually abbreviated as PPC, a production possibility curve is a representation of the quantity of services and goods that can be produced by an economy using the available resources and technology.

A PPC is used to provide an analysis of the amount of production that is deemed beneficial for the economic growth of a country or economy. The data points in the curve mainly show the manufacturing cost and the chance of producing more items. Points outside the curve represent unattainable that could probably be as result of inadequate labor force, raw materials or capital.

2 weeks ago
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