Question

A situation in which some resources are NOT fully utilized is represented in a
production possibilities frontier diagram by

Answer 1

The production would be a my a point inside the curve. The curve shows the possibility of producing with all possible materials so inside the curve is representative of one or more of the resources not being used to its full capacity.

Answer 2

In the Production possibilities frontier diagram, the unreachable point is the point outside of the curve where available resources cannot be utilized for production at this time.

What is a Production Possibilities Curve?

It is a curve that depicts possible combinations of two things that can be made with the available resources and technology, with the available resources being effectively utilized per unit time.

It is a graph that depicts the conceivable quantities that can be generated from two different products.

A production possibilities frontier (PPF) has all achievable points. All points beyond the border of production possibilities are unreachable.

Hence, a situation in which some resources are not fully utilized is represented in the production possibilities frontier (PPF) curve as unattainable points. Expanding into the unattainable zone, on the other hand, would be beneficial for the economy.

To learn more about the production possibilities frontier (PPF) curve, refer to the link:

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