It is best for an economy to produce at a point inside the PPF because then it is not wasting its resources.
Importance of Efficiency:
Efficiency is essential within an economy. It helps in improving the overall economic productivity as all the available resources are used effectively. When the resources are effectively utilized, the economic output tends to increase and thus, boosting the overall GDP.
Answer and Explanation: 1
The statement is False.
Production possibility frontier (PPF) refers to a graph that economists use to represent the quantities of two goods that...
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fromChapter 1 / Lesson 5
Learn about the production possibilities frontier (PPF). See what the PPF graph represents and what causes the ppc curve to shift outward.