Question

or nework. Chapter 2 Homework (MICO core: 0 of 1 pt 13 of 18 (14 3) Usig the pone drawing tol, show a prodution port that is attarable but not eficient Libel it gr Peas (mions of bushels per

Answer 1

PC represents the curve which shows the combination of goods the country produces given that there is full employment and resources are efficiently utilised.

1) The PPC of the country is shown as below

2) All the efficient points lie on the curve of PPC. Point A which is marked in the graph is one such efficient point.

Here there is full employment and the resources are efficiently utilised.

3) Points which lie in the area between the axes and the PPC are the attainable points or combinations but not the efficient ones. Only the combinations lying on the PPC are both attainable and efficient.

So point B is attainable but not efficient as shown in the graph ie the resources are not completely utilised and could be done and production could be increased.

(You can comment for doubts)