Question

Discuss the concept of attainable and unattainable combinations in the Production Possibility Curve with the help of a diagram.

Answer 1

Attainable Combinations: Attainable combinations refer to those combinations of two goods which can be produced with the available resources and technology. These combinations lie on or inside the Production Possibility Curve (PPC).

Unattainable Combinations: Unattainable combinations refer to those combinations of two goods which cannot be produced with the available resources and technology. These combinations lie outside the PPC.