Answer of 1 question

1.  Draw a Production Possibility curve and show the following situations -

(i) Full utilisation of resources.
(ii) Economic growth
(iii) Decrease in resources
(iv) Under utilisation of resources.
 

Dear student,


1) Point A,B,C,D,E,F are showing full utilisation of resources,

2) 

X1Y1 is initial PPC with growth in resources it has shifted rightwards to x2y2



3) 

with decrease in resources PPC will shift leftwards.



4) 

point A inside PPC is showing under utilisation of resources,

Regards