English

True or False with Reason: Production possibility frontier shifts towards right when an economy moves from a situation of underutilisation to fuller utilisation of resources.

Advertisements
Advertisements

Question

True or False with Reason:

Production possibility frontier shifts towards right when an economy moves from a situation of underutilisation to fuller utilisation of resources.

True or False
Advertisements

Solution

This statement is false.

Reason:

  • Moving from underutilisation to fuller utilisation changes the economy’s operating point, not its productive capacity.
  • The economy moves from inside the PPF to a point on the existing PPF; the frontier does not shift.
shaalaa.com
  Is there an error in this question or solution?
Chapter 1: Introduction - OBJECTIVE QUESTIONS [Page 1.31]

APPEARS IN

Sandeep Garg Introductory Microeconomics [English] Class 11
Chapter 1 Introduction
OBJECTIVE QUESTIONS | Q 6. | Page 1.31
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×