Practicing Success
Practicing Success
CUET Preparation Today
| Assume there are only two goods produced in the economy (having fixed amount of resources and technology), Good A and Good B. The quantities of Good A and Good B which can be produced using given resources are plotted on a graph with good A on x-axis and Good B on y-axis. Different combinations of A and B when plotted and joined gave a downward sloping concave curve. One point, Point F lies above the curve. Point E lies below the curve. |
| Which curve will be obtained by joining all the points? |
Production possibility curve Indifference curve Supply curve Demand curve |
| Production possibility curve |
| A Production Possibility Curve (PPF) is a graph that shows all the different combinations of output of two different goods that can be produced using available resources and technology. |
