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The following table depicts the production possibilities of commondiaties X and Y: (a) Show these production possibilities through PPF. What do the points on the curve indicate? (b) Lable a point F inside the curve. What does this point indicate? (c ) Lable a point G outside the curve. What does this point indicate? (d) What must occur so that economy can attain the level of production as indicated by point G.

Answer» <html><body><p></p>Solution :(a)The <a href="https://interviewquestions.tuteehub.com/tag/given-473447" style="font-weight:bold;" target="_blank" title="Click to know more about GIVEN">GIVEN</a> <a href="https://interviewquestions.tuteehub.com/tag/diagram-950736" style="font-weight:bold;" target="_blank" title="Click to know more about DIAGRAM">DIAGRAM</a> shows all the <a href="https://interviewquestions.tuteehub.com/tag/production-14556" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCTION">PRODUCTION</a> possibilities given in the table. Point on the curve (A to E) indicate that there is fuller utilization of resources, <br/> (b) Point F inside the curve indicates under utilization of resources, <br/> (c ) Point G outside to curve indicates an unattainable combination, <br/> (d) Economy can attain the level of production as indicated by point G, only when there is an <a href="https://interviewquestions.tuteehub.com/tag/increase-1040383" style="font-weight:bold;" target="_blank" title="Click to know more about INCREASE">INCREASE</a> in resources or an improvement in technology with respect to both <a href="https://interviewquestions.tuteehub.com/tag/commodities-923550" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITIES">COMMODITIES</a> X and Y. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/SG_MIC_ECO_C01_S01_006_S01.png" width="80%"/></body></html>


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