What does it mean when society is operating inside the production possibilities frontier (PPF)?

Expert Solution

Production possibility frontier or curve shows various combinations of the amount of two goods which can be produced within the given resources. If society is operating inside the PPF then it is totally wasteful and also if society operating inside the PPF then it shows unemployment situation of a country. Also inside the PPF also shows that society not use their resources fully also it indicates under- utilisation or under production in the economy.

Rahul Sunny answered 2 years ago

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