CA Foundation Exam > CA Foundation Questions > If a point falls inside the production possib...
Start Learning for Free
If a point falls inside the production possibility curve, what does it indicate?
- a)Resources are over utilized
- b)Resources are under utilized
- c)There is employment in the economy
- d)Both (b) and (c)
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
If a point falls inside the production possibility curve, what does it...
A point lying inside the production possibilities curve indicates underutilization, unemployment, or inefficient use of resources: more goods and services could be produced by using the limited resources more fully and efficiently.
View all questions of this test
Most Upvoted Answer
If a point falls inside the production possibility curve, what does it...
Explanation:
What does it indicate if a point falls inside the PPC?
A production possibility curve (PPC) is a graphical representation of the combination of two goods that can be produced in an economy given its resources and technology. Any point inside the PPC represents an inefficient use of resources because the economy can produce more of both goods without sacrificing any of the other.
What does it indicate if a point falls inside the PPC?
- Resources are underutilized: A point inside the PPC indicates that an economy is not using its resources to their full potential. It means that the economy is not producing the maximum possible output of goods from the given resources.
- There is unemployment in the economy: If the economy is not using its resources to their full potential, it means that some resources are lying idle, and there is unemployment in the economy. The resources could be labor or capital, and their underutilization means that the economy is not creating the maximum number of jobs possible.
In conclusion, a point inside the production possibility curve indicates that an economy is not using its resources to their full potential, and there is unemployment in the economy.
Free Test
FREE
| Start Free Test |
Community Answer
If a point falls inside the production possibility curve, what does it...
It shows that resources are underutilized. Because when the resources are full utilized then the point comes on production possibly curve. aAnd when resources are not fully utilized it will not reach upto the production possibly curve,it remains under the ppc
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer?
Question Description
If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer?.
If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer?.
Solutions for If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer?, a detailed solution for If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If a point falls inside the production possibility curve, what does it indicate?a)Resources are over utilizedb)Resources are under utilizedc)There is employment in the economyd)Both (b) and (c)Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup