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"An economy always produces on but not i...

"An economy always produces on but not inside PPC. Defend or refute.

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The given statement is refuted. An economy operates on PPC, only when resources are fully and efficiently utilised. It means, if there is unemployment or inefficient use of resources, the economy may operate inside PPC. So, the economy may operate at point .H., in addition to the points on the curve AB on PPC.
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FULL MARKS-INTRODUCTION TO ECONOMICS -NCERT TEXTBOOK QUESTIONS SOLVED
  1. State the assumptions on which a PP curve is based. Also explain its p...

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  2. Does production take place only on PPC?

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  3. "An economy always produces on but not inside PPC. Defend or refute.

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  4. Why is Production Possibilities Curve concave? Explain

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  5. Give reasons for the following statements: (i) A production Possibil...

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  6. Explain the meaning of opportunity cost with the help of production po...

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  7. Define MOC. Explain the concept with a hypothetical numerical example.

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  8. Consider the following statement- An economy always manages to meet al...

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  9. In the context of an economy when we talk about 'scarcity', we refer t...

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  10. Economic problem arises due to plenty of resources.

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  11. Because of destruction caused by war, a country's PPF will shift to th...

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  12. A job guarantee scheme will lead to a rightward shift of PPF.

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  13. If a PPF shifts to the right, the new PPF will be parallel to the orig...

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  14. A 'production Possibility Frontier' (PPF) is always represented as a ...

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  15. If the economy operates inside PPC, it shows full utilisation of resou...

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  16. Growth of resources shifts PPC towards left.

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  17. PPC is concave shaped as production of one good can be increased only ...

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  18. Economy can never operate outside PPC with the given resources and tec...

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  19. Economy always operates on PPC.

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  20. Define Marginal Opportunity cost.

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