**Production Possibility Curve**

The production possibility curve (PPC) is a graphical representation of the different combinations of two goods that an economy can produce using its limited resources and technology. It shows the maximum output that can be achieved given the current resources and technology.

The PPC is typically drawn as a downward-sloping curve, indicating the trade-off between producing one good over the other. The curve represents the efficient use of resources, as all points on the curve are producing the maximum output possible.

**1. Fuller Utilisation of Resources**

When an economy is operating at full utilization of its resources, it means that it is producing at a point on the PPC curve. This implies that all available resources are being efficiently allocated to produce goods and services. In this situation, the economy is achieving its maximum potential output.

On the PPC graph, a point representing full utilization of resources would lie directly on the curve. Any point inside the curve would indicate underutilization of resources, and any point outside the curve would be unattainable given the current resources and technology.

**2. Economic Growth**

Economic growth refers to an increase in an economy's potential output over time. This can be due to improvements in technology, increases in the quantity or quality of resources, or improvements in productivity. Economic growth is represented by an outward shift of the PPC curve.

When the PPC curve shifts outward, it indicates that the economy can now produce more of both goods. This means that the economy has increased its capacity to produce goods and services. The new points on the curve represent higher levels of output that were not possible before.

**3. Decrease in Resources**

A decrease in resources, such as a decline in the availability of raw materials or a decrease in the labor force, will result in a contraction of the PPC curve. This means that the economy's capacity to produce goods and services has decreased.

When the PPC curve shifts inward, it indicates that the economy can now produce less of both goods. The new points on the curve represent lower levels of output that can be achieved given the reduced availability of resources.

**4. Underutilisation of Resources**

Underutilisation of resources occurs when an economy is not operating at its maximum potential output. It means that some resources are either unemployed or not fully utilized in the production process. This can be due to factors such as inefficiencies, lack of demand, or inadequate technology.

On the PPC graph, a point inside the curve represents underutilisation of resources. This implies that the economy could produce more goods and services without using any additional resources. To achieve fuller utilization, the economy needs to move towards the PPC curve, either through improved efficiency or increased demand.

In conclusion, the production possibility curve is a useful tool for understanding the trade-offs and opportunities an economy faces in allocating its limited resources. It demonstrates the relationship between the production of two goods and how changes in resources, technology, and efficiency can impact an economy's potential output.