Question

please match the following key terms with their definition.

-       A.       B.       C.       D.	a point on the PPC
-       A.       B.       C.       D.	a point beyond the curve
-       A.       B.       C.       D.	a point inside the curve
-       A.       B.       C.       D.	shifting the PPC to the right (or outward)

A.	efficiency
B.	unattainable (with current resources and technology)
C.	inefficiency
D.	economic growth

Answer 1

A point on the PPC shows full utilisation of resources and hence implies efficiency.

The point beyond the curve shows that the resources are not enough for the production. Hence, the point is unattainable with the current resources and technology.

The point inside the curve shows that the resources are under utilised. Thus, this point implies inefficiency.

The shifting of the PPC signifies that either the resources of the nation has risen or firms can produce more with the same resources. All this signifies economic growth.