Is it necessary that an economy will ALWAYS operate ON the transformation curve(production possibility curve)?

No

No. It is not necessary that an economy will always operate on the transformation curve (production possibility curve).

PPC does not show the point at which the economy will actually operate. It shows the maximum available possibilities, which an economy can produce. The exact point of operation depends on how well the resources of the economy are used. Economy will operate on PPF only when resources are fully and efficiently utilised.

However, an economy may not always operate on the PPC due to various reasons:

1. Underutilization of resources: If an economy is not fully utilizing its available resources, it will operate below the PPC. This could be due to factors such as unemployment, inefficiency, or lack of investment.

2. Inefficiency: Production processes might not be fully optimized, leading to wasted resources and less output than what's theoretically possible.

   Changes in technology or resources: Technological advancements or changes in resource availability can shift the PPC, causing the economy to operate at a different point on the curve.

Therefore, while the PPC represents the maximum potential output of an economy, it is not necessary for the economy to always operate on the curve. It depends on the efficiency of resource allocation and the level of resource utilization in the economy.