1.

Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using PPC.

Answer» <html><body><p></p>Solution :PPC <a href="https://interviewquestions.tuteehub.com/tag/represents-1185452" style="font-weight:bold;" target="_blank" title="Click to know more about REPRESENTS">REPRESENTS</a> different <a href="https://interviewquestions.tuteehub.com/tag/combination-922669" style="font-weight:bold;" target="_blank" title="Click to know more about COMBINATION">COMBINATION</a> of two goods which can be produced with given resources <a href="https://interviewquestions.tuteehub.com/tag/assuming-1986865" style="font-weight:bold;" target="_blank" title="Click to know more about ASSUMING">ASSUMING</a> (i) Resources are fully and efficiently utilised (ii) Technique of <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> remains unchanged. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U01_C01_E01_077_S01.png" width="80%"/> <br/> Due to unemployment, an economy operates inside the PPC (POint M and point N) implying under utilisation of resources. <br/> If the <a href="https://interviewquestions.tuteehub.com/tag/government-1010037" style="font-weight:bold;" target="_blank" title="Click to know more about GOVERNMENT">GOVERNMENT</a> starts employment generation schemes, the output will increase and may lead to fuller utilisation of resources on PPC AB.</body></html>


Discussion

No Comment Found

Related InterviewSolutions