_______________ refers to an arrangement by which central problem of an economy are solved.
Dear Student
Production Possibility Curve refers to an arrangement by which central problem of an economy are solved.
Basically, there are three central problem of an economy i.e. what to produce , how to produce and for whom to produce.these problem can be solved with the help of Production Possibility Curve.
Production Possibility Curve represent the combination of goods that can be produced with the given resources and technology.So, this solve the problem of what to produce
The techniques that we used for producing goods should be such that resources get fully utilised.Production should take place on the Production Possibility Curve not inside. This solve the problem of how to produce.
The income generated should be distributed among factors in such a way that all the factors are sufficiently satisfied.By this Production Possibility Curve solve the problem of distribution or for whom to produce.
Regards
Production Possibility Curve refers to an arrangement by which central problem of an economy are solved.
Basically, there are three central problem of an economy i.e. what to produce , how to produce and for whom to produce.these problem can be solved with the help of Production Possibility Curve.
Production Possibility Curve represent the combination of goods that can be produced with the given resources and technology.So, this solve the problem of what to produce
The techniques that we used for producing goods should be such that resources get fully utilised.Production should take place on the Production Possibility Curve not inside. This solve the problem of how to produce.
The income generated should be distributed among factors in such a way that all the factors are sufficiently satisfied.By this Production Possibility Curve solve the problem of distribution or for whom to produce.
Regards