Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

The combination of goods which are beyond the boundary line of the PPC is often regarded as which of the following?                                     

Options:

Attainable combination

Unattainable combination

Insufficient combination

Sufficient combination

Correct Answer:

Unattainable combination

Explanation:

The correct answer is option 2: Unattainable combination

 

  • The Production Possibility Curve (PPC) represents the maximum possible output combinations of two goods that an economy can produce with available resources and technology.
  • Any point beyond the PPC boundary represents a combination of goods that the economy cannot currently produce because it lacks sufficient resources or technology.
  • Therefore, such a combination is called an Unattainable Combination because it lies outside the production possibilities of the economy.
  • These can only be achieved if there is a shift in PPC due to increase in resources of the economy or technology.