unit-1-central-problems

Unit-1 Central Problems

The purpose of this unit is to define the subject matter of economics, highlighting what constitute the central (essential) problems of an economy.

A PPC provides an economy’s ‘Menu of Choice’. If resources are scarce and fully employed, will the economy be operating on PPC or inside it?

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Learning Pundits Content Team

Written on Jun 26, 2019 5:29:55 PM

If you are unemployed you are not producing any output. If you are underemployed you can produce some output but not your potential output that is maximum output.