Login

Explain how production possibility curve is affected when resources are inefficiently employed in an economy.

Answer given by Kanupriya is correct. For the diagram, follow the below mentioned link.
https://www.meritnation.com/cbse/class12-commerce/ncert-solutions/economics/introductory-microeconomics/introduction/page7-Exercise-qno3/338_1980_12677/what-is-aproduction-possibility-frontier
 

  • 5
View Full Answer

When resources are inefficiently employed, the PPC shifts backward..

  • 1

when their is inefficient utilisation of resources in an economy ,there will be no effect on pp curve however production will take place under ther curve

  • 6

kanupriya is right... under utilisation of resources / inneffictive use of resources for example when there is unemployment or workers go on strike has NO EFFECT ON THE PPC.. rather the economy produces at a point INSIDE the PPC as the economy is NOT PRODUCING AT ITS FULL POTENTIAL. if question is 3/4 marker... make a diagram and then show the initial and final points of production

  • 5
What are you looking for?