In the production possibility frontier, a point inside the curve indicates: MCQ with Answer and Explanation

In the production possibility frontier, a point inside the curve indicates:
A. Technological progress
B. Efficient utilisation of resources
C. Unattainable combination
D. Underutilisation of resources
Answer: Option D
Solution (By JKSSB Mock Tests)
Any point inside the PPF represents underutilisation or inefficient use of resources. Points on the curve are efficient and points outside are unattainable with current resources.

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Practice More Economy Set 1 Questions

Question #1
External economies of scale are enjoyed by a firm when:
A. the entire industry expands
B. it reduces prices
C. the firm increases its own size
D. it merges with another firm

Correct Answer: Option A


Explanation:
External economies arise from expansion of the industry as a whole, benefiting all firms.

This question belongs to: Economy GK Economy Set 1
Question #2
Gross National Product at market prices equals GDP at market prices:
A. minus net factor income from abroad
B. minus depreciation
C. plus depreciation
D. plus net factor income from abroad

Correct Answer: Option D


Explanation:
GNP = GDP + net factor income from abroad.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'International Financial Services Centres Authority' was established in India in which year?
A. 2021
B. 2015
C. 2020
D. 2019

Correct Answer: Option C


Explanation:
IFSCA was established in 2020.

This question belongs to: Economy GK Economy Set 1