Any point beyond the PPC curve is called
inefficient or unattainable.
Any point beyond the production possibilities curve (PPC) is called unattainable or unachievable. This means that it is not currently possible to reach that level of production given the available resources and technology. It represents a level of output that is beyond the economy's current capacity.
Any point beyond the PPC (Production Possibility Curve) is called an unattainable or inefficient point.
To understand why it is called an unattainable point, let's explain what the PPC represents. The PPC illustrates the various combinations of two goods or services that an economy can produce given its resources and technology. It shows the maximum output that can be achieved when resources are efficiently allocated.
Points on the PPC curve represent fully efficient production, where all available resources are utilized in the best possible way to maximize output. Any point inside the curve represents an inefficient use of resources, as there is potential for more output without increasing resource inputs.
However, any point beyond the PPC curve is considered unattainable. This means that the economy does not have enough resources or technology to produce at that level of output. It could be due to constraints such as scarcity of resources, technological limitations, or a combination of factors.
So, any point beyond the PPC curve denotes a level of production that is currently not possible or not achievable with the available resources and technology.