Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving resons, its properties.

Assuming that no resource is equally efficient in production of all go

1.	Assuming that no resource is equally efficient in production of all goods, name the curve which shows production potential of the economy. Explain, giving resons, its properties.
Answer» Solution :The curve is calles Production possibilities FRONTIER (PPF). DISCUSS the following TWO Properties of PPF, (i) PPF is downward sloping, (ii) PPF is CONCAVE Shaped.