Question

Consider the following table:

Production Possibilities	A	B	C	D	E
Guns (Units)	0	1	2	3	4
Butter (Units)	10	9	7	4	0

All possibilities A to E deal with ______.

विकल्प

• Full use of available resources

• Under-utilisation of available resources

• No use of available resources

• Demand for more resources

Answer 1

All possibilities A to E deal with full use of available resources.

Explanation:

All combinations A to E lie on the PPF, so each shows full use of the available resources with the given technology.