Question

On a production possibility curve, data points that fall outside of the curve represent

Answer 1

The answer is: a currently unattainable production
This happen due to either lack of materials, labor or capital. production possibility curve create a graphical representation of the combinations of goods and services an economy can produce. IWe use  production possibility curve in order to determine which amount of production would provide the best result for the economic growth.

Answer 2

On a production possibility curve, data points that fall outside of the curve represent currently unattainable production.

Further explanation:

A production possibility curve shows all those points at which an economy could produce using given resources and technology. It shows the efficient points of production where all resources and technology are used in the best manner. An economy doesn’t necessarily produce on production possibility curve. An economy can exist either inside or on the production possibility curve. If an economy is producing inside the production possibility curve, it shows that the economy is not using the given resources and available technology in the best possible manner.

The region outside the production possibility curve is unattainable with available resources and technology.

Justification for the correct and incorrect answer:

inefficient allocation of resources: This option is incorrect.

The entire region inside a production possibility curve shows the inefficient allocation of resources. It includes all points where the economy is under-producing which may be because of under utilization of resources or inefficient use of technology.

a balanced allocation of resources: This option is incorrect.

The data points that fall outside of the curve don’t represent the balanced allocation of resources. Balanced allocation of resources is interpreted by points on the production possibility curve. Points on the production possibility curve show the balanced and efficient use of available resources and technology.

ideal production: This option is incorrect.

An ideal production for an economy is the one that gives the maximum output from given inputs. This is characterized by the points on the production possibility curve and not the region outside the curve.

a currently unattainable production: This option is correct.

The data points that fall outside of the production possibility curve represent currently unattainable production. With given resources and available technology, these data points are unfeasible. They would be feasible in the future if either quantum of resources rises or advanced technology is used.

Therefore, on a production possibility curve, data points that fall outside of the curve represent currently unattainable production.

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Answer details:  

Grade: Senior School

Subject: Economics

Chapter: Introduction to Micro Economics

Keywords: on a production possibility curve, data points, that fall, outside of the curve, represent, inefficient allocation of resources, balanced allocation of resources, ideal production, currently unattainable production, production, allocation, given resources and technology, on the production possibility curve, outside the production possibility curve, unattainable.