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Central Problems & the PPC · Question 41 of 87

Question 41

MediumOriginal question

Read the two statements and choose the correct option.

I. Every point on a PPC shows full and efficient use of resources.

II. A point outside the PPC can be reached by using resources more fully.

Options for question 41

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Statement I is true: the curve is drawn for full, efficient use.

  2. II is false: resources are already fully used on the curve; a point outside needs more resources or better technology.

Concept
Points on and outside the PPC
Typical time
70 s
Your time
—
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.