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» SOLUTION :The given statement is refused. Underutilisation and UNUTILISATION does not DECREASE the capacity of economy to PRODUCE. So, there will be shift of Production Possibility Frontier (PPF). However, economy will operate at some point INSIDE the PPF.