Multiple choice

Any point inside the PPC curve area shows

  1. impossible utilisation of resources

  2. optimum utilisation of resources

  3. less than optimum utilisation of resources

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The points lying inside PPC curve area show less than optimum utilisation of resources. Points lying outside show impossible utilisation due to the present level of technology, while points on the line show the optimum utilisation.