Explain que 4 it's correct ?????? i B) the figure
there ts inetiicient use oi resources, then the
e•eonomy will operate inside the ISI'C.
in the figure:
2. •Massive unemployment shiit the to the left", defenY refute
Ans. This statement is refuted. Massive unemployment is due to
not decrease the capacit•,' economy to produce. Therefore, there will be no shift of PPC
will operate inside the P PC due to underutilisation of resources.
3. A of people died and many factories were destroyed in an eareupak.e I natural r
affect the P PC ?
Ans. The PPC of the economy will shift to its left as there is
accordingly possibility to produce maximum reduces due to destn=-tÄM oi
4. Draw a PPC to represent the following on it
Underemployment of resources
Growth of resources
Fuller utilisation of resources
Points L, M, N represent under-employment oi
rescmrces.
Points A, H, D, l, E represent fuller utilisation of
resources.
Points S, T. [1 represent growth of resources.
