PPC is a mathematical tool for an economy to solve:a) Economic problem...
Factors such as labor, capital and technology, among others, will affect the resources available, which will dictate where the production possibility frontier lies. The PPF is also known as the production possibility curve or the transformation curve.
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PPC is a mathematical tool for an economy to solve:a) Economic problem...
Economic problems of an individual:
PPC (Production Possibility Curve) is not specifically designed to solve the economic problems of an individual. It is a macroeconomic tool that focuses on the entire economy rather than individual economic agents.
Scarcity problems of an economy:
While PPC is related to scarcity problems in the economy, it is not specifically designed to solve these problems. Scarcity is a fundamental economic problem that arises due to limited resources and unlimited wants. PPC represents the different combinations of goods and services that can be produced given the available resources and technology. It helps in illustrating the trade-offs and opportunity costs involved in allocating scarce resources, but it does not provide a direct solution to scarcity problems.
Distribution problems of the resources:
PPC does not directly address the distribution problems of resources in an economy. Distribution is concerned with how resources, income, and wealth are allocated among individuals or groups. PPC focuses on the production possibilities of an economy based on its available resources and technology, but it does not tackle the distributional aspects.
Central problems of an economy:
The correct answer is option 'D': Central problems of an economy. PPC is a mathematical tool used to solve the central problems of an economy. The central problems of an economy include what to produce, how to produce, and for whom to produce. PPC helps in determining the optimal allocation of resources and the production mix by illustrating the trade-offs between different goods and services. It assists in making decisions about the most efficient use of resources, the choice of production techniques, and the distribution of goods and services in the economy.
Overall, PPC is primarily used as a tool to analyze and solve the central problems of an economy rather than addressing the economic problems of an individual, scarcity problems, or resource distribution problems.
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