"An economy always produces on, but not inside a PPC", defend or refute. Or Does production take place only on the PPC ?

"An economy always produces on, but not inside a PPC", defend or refut

1.	"An economy always produces on, but not inside a PPC", defend or refute. Or Does production take place only on the PPC ?
Answer» Solution :This statement is refuted. `` When resources are fully and efficiency utilised, te economy will operate on PPC.Refer to POINT (V) in the figure. `` If there is inefficient USE of resources, then the economy will operate INSIDE the PPC. Refer to point (G) in the figure.