explain the meaning and implication of "fuller and efficient utilisation of reasources " on production possibility curve of the economy.

Fuller and efficient utilisation of resources means that resources are employed in consideration with their best usages. An efficient utilisation of resources would be the one that involves least opportunity cost in terms of sacrificing the production of other goods. For instance, if the production of consumer goods involves less opportunity cost (say, sacrifice of 3 capital goods for the production of 1 consumer good) than the opportunity cost involved in the production of capital goods (say, sacrifice of 4 consumer goods for the production of 1 capital good), then the resources would be more efficiently utilised in the production of consumer goods. Thus, a comparison of the opportunity cost involved in the utilisation of resources in different alternative uses helps in attaining an efficient utilisation of resources.

Fuller utilisation of resources is shown by all the points lying on PPC, like A, B, C, D and E.


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