Which one of the following statements about production possibility frontier is not correct?

The Production Possibility Frontier (PPF) represents the maximum possible combinations of two goods that an economy can produce with its limited resources and technology [2]. Statement 1 is correct because the PPF slopes downward to the right, reflecting the scarcity of resources; to produce more of one good, some amount of the other must be sacrificed [1]. Statement 2 is correct as it defines the PPF as the collection of possible combinations of goods and services given available resources and technology [2]. Statement 3 is correct because points on the frontier represent full utilization, while points inside represent underemployment or wasteful use of resources, both of which are attainable [1]. Statement 4 is incorrect because, on the frontier, resources are fully utilized; therefore, increasing the output of one commodity necessitates a reduction in the output of the other due to the trade-off involved [1].

Sources

1. [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 1: Introduction > Table1.1: Production Possibilities > p. 4
2. [2] Microeconomics (NCERT class XII 2025 ed.) > Chapter 1: Introduction > Production Possibility Frontier > p. 3