Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Any point on PPC represents :

Options:

Optimum Utilisation of resources

Under-utilisation of resources

Over-full employment of resources

Unattainable Combination

Correct Answer:

Optimum Utilisation of resources

Explanation:

The correct answer is option (1) : Optimum Utilisation of resources

Explanation :

The Production Possibility Curve (PPC) represents the maximum attainable combinations of two goods that an economy can produce, given its level of technology and the inputs of factors of production. Points on the PPC represent efficient and optimum utilization of resources because the economy is producing the maximum possible output given its constraints.

Points inside the curve indicate underutilization of resources, points on the curve represent efficient utilization, and points outside the curve are unattainable with the current level of resources and technology.