Question

ncept Question 3.6 )Using the 3-point curved line drawing tool, draw a ) Using the point drawing tool, show a production point that is efficient. Label 'A ..) Using the point drawing fool, show. production point that is attaratie but not eficient. Labeit' arefully follow the instructions above, and only draw the required objects PPC for this country. Label # PPC Pears (millions of bushels per yea

Answer 1

Production possibilities curve indicates the various combination of two goods that an economy can produce given the amount of resources and technology it have.

In the given case, economy is producing 2 goods - Wheat and Pears

Following is the required Production Possibilities Curve -

Any point that lies on the production possibilities curve is termed as efficient. So, point A in the above figure represents efficient point.

Any point that lies inside the production possibilities curve is termed as attainable but inefficient. So, point B in the above figure represents attainable but inefficient point.