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    I don't get what the points represent especially B.
    Except A. I know A represents the "impossible zone" Which is unattainable.
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    I can't see point W, or is that just me? haha.
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    Oops sorry I chose the wrong letters lol
    I've edited the letters.
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    (Original post by GeorgeAndLennie)
    I don't get what the points represent especially B.
    Except A. I know A represents the "impossible zone" Which is unattainable.
    B is underemployment, what this means is that the economy can increase production without undergoing an opportunity cost.

    It is a bit like saying- "I can produce 20 oranges and 20 apples" but "I only choose to produce 10 oranges and 10 apples".

    Anything on the PPF curve directly means that resources are efficiently allocated and applied, it is a point of pareto efficiency which means to go one better for an orange (in this case) you have to lose an apple.

    "impossible zone" as you describe it is currently unattainable with the current resources.
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    Thank you. That helped.
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    A is not 'the impossible zone'. C is. Any point outside the curve is unattainable (more technically I believe they're attainable but unsustainable for any length of time).

    D is a point where all resources are being used in the production of one good, and none of the other good is being produced.

    B has already been adequately explained.
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    Oh sorry I meant A is the impossible zone.
    Thanks for clearing up D though
 
 
 
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