In the graph, point A shows that A PPC for wheat (tonnes) and cloth (lakh metres), bowed out from the origin, from 45 lakh m of cloth with no wheat to 50 tonnes of wheat with no cloth. Point A (20 wheat, 15 cloth) lies inside the curve, point B (40 wheat, 27 cloth) lies on it, and point C (45 wheat, 40 cloth) lies outside it.

In the graph, point A shows that — CUET Economics practice

In the graph, point A shows that

Question 29

EasyOriginal question

In the graph, point A shows that

A PPC for wheat (tonnes) and cloth (lakh metres), bowed out from the origin, from 45 lakh m of cloth with no wheat to 50 tonnes of wheat with no cloth. Point A (20 wheat, 15 cloth) lies inside the curve, point B (40 wheat, 27 cloth) lies on it, and point C (45 wheat, 40 cloth) lies outside it.

resources are fully and efficiently usedCorrect answerYour answersome resources are unemployed or used inefficientlyCorrect answerYour answerthe combination cannot be produced with current resourcesCorrect answerYour answertechnology has improvedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

A lies inside the PPC: the economy could produce more of both goods with what it has.
A point inside the curve means underutilisation of resources.

Concept: A point inside the PPC
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe production possibility curve

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

In the graph, point A shows that

Question 29

Explanation