Underutilisation and unutilisation of resources will shift the Production Possibility Frontier to the left. Defend or refute.

Underutilisation and unutilisation of resources will shift the Product

1.	Underutilisation and unutilisation of resources will shift the Production Possibility Frontier to the left. Defend or refute.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :The given statement is refused. Underutilisation and <a href="https://interviewquestions.tuteehub.com/tag/unutilisation-3248900" style="font-weight:bold;" target="_blank" title="Click to know more about UNUTILISATION">UNUTILISATION</a> does not <a href="https://interviewquestions.tuteehub.com/tag/decrease-946104" style="font-weight:bold;" target="_blank" title="Click to know more about DECREASE">DECREASE</a> the capacity of economy to <a href="https://interviewquestions.tuteehub.com/tag/produce-1167752" style="font-weight:bold;" target="_blank" title="Click to know more about PRODUCE">PRODUCE</a>. So, there will be shift of Production Possibility Frontier (PPF). However, economy will operate at some point <a href="https://interviewquestions.tuteehub.com/tag/inside-1045864" style="font-weight:bold;" target="_blank" title="Click to know more about INSIDE">INSIDE</a> the PPF.</body></html>