The figure shows the production possibility frontier of an economy th…

The figure shows the production possibility frontier of an economy that produces only corn and cotton:

production possibility frontier with points P, Q, R and S

Match the points (List-I) with what they show (List-II):

List-I	List-II
(A) Point P	(I) The most corn the economy can produce, using all its resources for corn
(B) Point Q	(II) A combination that cannot be produced with the present resources and technology
(C) Point R	(III) A combination produced when some resources are underemployed or wasted
(D) Point S	(IV) A combination produced when the resources are fully utilised

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

Where a point lies against the frontier tells what it shows: on it, below it or beyond it.

List-I	List-II	Reason
(A) Point P	(IV) A combination produced when the resources are fully utilised	P lies on the frontier (2 corn, 7 cotton).
(B) Point Q	(III) A combination produced when some resources are underemployed or wasted	Q lies below the frontier.
(C) Point R	(II) A combination that cannot be produced with the present resources and technology	R lies beyond the frontier, outside what can be produced.
(D) Point S	(I) The most corn the economy can produce, using all its resources for corn	S is where the frontier meets the corn axis: 4 units of corn and no cotton. It is also on the frontier, but only S gives the most corn.

NCERT (2026-27): “Production Possibility Frontier If all the resources are used in the production of corn, the maximum amount of corn that can be produced is 4 units and if all resources are used in the production of cotton, at the most, 10 units of cotton can be produced. The economy can also produce 1 unit of corn and 9 units of cotton or 2 units of corn and 7 units of cotton or 3 units of corn and 4 units of cotton. There can be many other possibilities. The figure illustrates the production possibilities of the economy. Any point on or below the curve represents a combination of corn and cotton that can be produced with the economy’s resources. The curve gives the maximum amount of corn that can be produced in the economy for any given amount of cotton and vice-versa. This curve is called the production possibility frontier.”

“The production possibility frontier gives the combinations of corn and cotton that can be produced when the resources of the economy are fully utilised. Note that a point lying strictly below the production possibility frontier represents a combination of corn and cotton that will be produced when all or some of the resources are either underemployed or are utilised in a wasteful fashion.”