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Nihal Singha from DELHI PUBLIC SCHOOL , asked a question
Subject: Economics , asked on 15/2/14

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


Vanita Rana ,Meritnation Expert added an answer
Answered on 17/2/14
Answer given by Kanupriya is correct. For the diagram, follow the below mentioned link.

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Sanjana , added an answer
Answered on 15/2/14

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

Kanupriya Mehendiratta , From Lady Irwin Girls Sr Sec School , added an answer
Answered on 15/2/14

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

Manpreet Singh , From Rotary Public School , added an answer
Answered on 15/2/14

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