Use app×
QUIZARD
QUIZARD
JEE MAIN 2026 Crash Course
NEET 2026 Crash Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
315 views
in Economics by (62.4k points)
closed by
Production in an economy is below its potential due to unemployment. Government starts employment generation schemes. Explain its effect using PPC.

1 Answer

0 votes
by (74.9k points)
selected by
 
Best answer
PPC represents different combination of two goods which can be produced with given resources assuming (i) Resources are fully and efficiently utilised (ii) Technique of production remains unchanged.
image
Due to unemployment, an economy operates inside the PPC (POint M and point N) implying under utilisation of resources.
If the government starts employment generation schemes, the output will increase and may lead to fuller utilisation of resources on PPC AB.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...