Question

1. if an economy operates below the Production possibility frontier ( PPF), what could you interpret?

a. This level of Output is difficult to reach

b. There is over utilization of resources

c. Economy is not performing up to its potential

d. Economy is performing up to its potential

.

2. Do you think incentive can make people change their decision?

a. Yes, Incentive works

b. Incentives can spoil the work

c. Incentives are bad examples

d. No, Incentive doesn't work

Answer 1

1) option (c) is correct Economy is not performing up to its potential

PPC refers that shows various combinations of the amounts of two goods which can be produced within the given resources and technology in the country

if any point below PPC that shows that their is underutilization of resources

2) option (a) is correct . Yes, Incentive works

incentives may be positive or negative both works as they affect the people's choice and behaviour in any way Acting as consumer, produce, employee , investor etc