Being on the PPC boundary implies

Being on the PPC boundary implies

• A. Efficient use of resources
• B. Unemployment
• C. Overutilization
• D. Underutilization

Answer: (A)

Being on the PPC boundary demonstrates productive efficiency: all available resources and technology are being used to the fullest, so you cannot increase the output of one good without sacrificing some of the other. This boundary represents full employment of resources, with no idle capacity. If a point were inside the curve, resources wouldn’t be used fully, indicating underutilization or unemployment. A point outside the curve isn’t attainable with current resources, and overutilization would imply pushing beyond capacity, which the boundary does not represent.

Being on the PPC boundary demonstrates productive efficiency: all available resources and technology are being used to the fullest, so you cannot increase the output of one good without sacrificing some of the other. This boundary represents full employment of resources, with no idle capacity. If a point were inside the curve, resources wouldn’t be used fully, indicating underutilization or unemployment. A point outside the curve isn’t attainable with current resources, and overutilization would imply pushing beyond capacity, which the boundary does not represent.