What do you mean by production possibilities of an economy?

Hi Puja,

Production possibilities means alternatives in the form of combinations of goods which can be produced with full & efficient use of given resources & technology.

Hope you understood.

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Hi Puja!!!!

Ans:-The resources of an economy  as a whole are always limited in comparision to what the people in the economy collectvely want to have.An allocation of the scapce resources of the economy gives rise to a particular combination of different goods ans services.The collection of all possible combinatiopn  of the goods and services that can be produce from a gven amount of resources and a given stock of technologycal knowledge is called the production possibilities of an economy.

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