Answer:

A point outside the PPF (Production Possibility Frontier) indicates an unattainable combination of goods and services. Let's understand this concept in detail:

Explanation:

PPF is a graph that shows the maximum output of two goods that an economy can produce with its limited resources and technology. It is a graphical representation of the production possibilities of an economy. The PPF shows all the possible combinations of two goods that an economy can produce with its available resources and technology.

A point on the PPF represents the efficient use of resources to produce two goods, whereas a point inside the PPF represents the inefficient use of resources to produce two goods. A point outside the PPF represents the unattainable combination of goods that an economy cannot produce with its available resources and technology.

For example, suppose an economy can produce two goods, i.e., computers and mobile phones. The PPF shows all the possible combinations of computers and mobile phones that an economy can produce with its available resources and technology. If an economy is producing at a point on the PPF, it means that it is using all its resources efficiently to produce computers and mobile phones. However, if an economy is producing at a point inside the PPF, it means that it is not using all its resources efficiently to produce computers and mobile phones. It is producing fewer computers and mobile phones than it could produce if it used all its resources efficiently.

On the other hand, if an economy is producing at a point outside the PPF, it means that it is not possible for it to produce that combination of goods with its available resources and technology. It is an unattainable combination of goods that an economy cannot produce with its limited resources and technology.

Conclusion:

Thus, a point outside the PPF indicates an unattainable combination of goods and services. It means that an economy cannot produce that combination of goods with its available resources and technology. It is important for an economy to operate on the PPF or near it to achieve maximum output and efficiency.

Its unattainable..