Question

Productive efficiency is achieved at any point inside the production possibility curve.

Group of answer choices

True

False

Answer 1

False

A production possibility curve represents the production of two type of goods in an economy over a given period of time in various combination

The two goods are shown on x axis and y axis

It follows the law of increasing opportunity cost

Its shape is bowed outwards

Productive efficiency is achieved on the production possibility curve exactly on the production possibility curve

If any point is under the production possibility curve then it shows the inefficiency production with the given resources and technology

If any point lies outside the production possibility curve then it represents that with the given resources and technology the production cannot be achieved