"An economy always operates on production possibility frontier and not inside it". Do you agree with the given statement?

"An economy always operates on production possibility frontier and not

1.	"An economy always operates on production possibility frontier and not inside it". Do you agree with the given statement?
Answer» <html><body><p></p>Solution :No, I do not <a href="https://interviewquestions.tuteehub.com/tag/agree-2404370" style="font-weight:bold;" target="_blank" title="Click to know more about AGREE">AGREE</a> with the given statement. An economy operates on production possibility frontier (<a href="https://interviewquestions.tuteehub.com/tag/ppf-592456" style="font-weight:bold;" target="_blank" title="Click to know more about PPF">PPF</a>) only when resources are fully and <a href="https://interviewquestions.tuteehub.com/tag/efficiently-2604067" style="font-weight:bold;" target="_blank" title="Click to know more about EFFICIENTLY">EFFICIENTLY</a> <a href="https://interviewquestions.tuteehub.com/tag/utilised-7379677" style="font-weight:bold;" target="_blank" title="Click to know more about UTILISED">UTILISED</a>. However, if resources are not fully and efficiently utilized, then economy operates at any point inside PPF.</body></html>