If an economy is operating inside the PPC, it is possible to increase the production of Good-1 without any decrease in the production of Good-2.

Question

Write ‘true’ or ‘false’ with a reason:

If an economy is operating inside the PPC, it is possible to increase the production of Good-1 without any decrease in the production of Good-2.

Answer 1

True. 

It is possible to increase the production of Good-1 without any decrease in the production of Good-2. Because, being inside the PPC points to a situation when resources are not fully utilized (or are not efficiently utilised).