On a production possibility curve, data points that fall outside of the curve represent a) an inefficient allocation of resources. b) a balanced allocation of resources. c) ideal production. d) a currently unattainable production.

A

A currently unattainable production.

Explanation:

A production possibility curve, or PPC, also known as production possibility frontier or PPF, is the representation of the amounts of goods and services an economy can produce using the given technology and resources. PPC is used to analyze the amount of production that would be the most beneficial for the country’s or economy’s economic growth. You can see the example of PPC/PPF in the picture below.

The data points represented on PPC can show the cost of manufacturing or the opportunity to produce more items. The points that fall outside of the curve show unattainable production, which happens due to the lack of capital, labor force, or materials.

Production possibility curve graph.
Production possibility curve (Source: www.policonomics.com)
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Academic.Tips. 2020. "On a production possibility curve, data points that fall outside of the curve represent a) an inefficient allocation of resources. b) a balanced allocation of resources. c) ideal production. d) a currently unattainable production." June 3, 2020. https://academic.tips/question/on-a-production-possibility-curve-data-points-that-fall-outside-of-the-curve-represent/.

1. Academic.Tips. "On a production possibility curve, data points that fall outside of the curve represent a) an inefficient allocation of resources. b) a balanced allocation of resources. c) ideal production. d) a currently unattainable production." June 3, 2020. https://academic.tips/question/on-a-production-possibility-curve-data-points-that-fall-outside-of-the-curve-represent/.


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Academic.Tips. "On a production possibility curve, data points that fall outside of the curve represent a) an inefficient allocation of resources. b) a balanced allocation of resources. c) ideal production. d) a currently unattainable production." June 3, 2020. https://academic.tips/question/on-a-production-possibility-curve-data-points-that-fall-outside-of-the-curve-represent/.

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"On a production possibility curve, data points that fall outside of the curve represent a) an inefficient allocation of resources. b) a balanced allocation of resources. c) ideal production. d) a currently unattainable production." Academic.Tips, 3 June 2020, academic.tips/question/on-a-production-possibility-curve-data-points-that-fall-outside-of-the-curve-represent/.

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