Question

"An economy always produces on, but not inside a PPC", defend or refute.
Or
Does production take place only on the PPC ?

Answer 1

This statement is refuted.
`**` When resources are fully and efficiency utilised, te economy will operate on PPC. Refer to point (V) in the figure.
`**` If there is inefficient use of resources, then the economy will operate inside the PPC. Refer to point (G) in the figure.