A point inside the production possibilities curve is:
A)attainable and the economy is efficient.
B)attainable, but the economy is inefficient.
C)unattainable, but the economy is inefficient.
D)unattainable and the economy is efficient.

Question

Quizplus · Accepted Answer

A point inside the production possibilities curve indicates that the economy is not utilizing all of its resources efficiently and is producing less than it is capable of producing. However, the point is still attainable with the given resources and technology. Therefore, the correct choice is B - attainable, but the economy is inefficient.

A Point Inside the Production Possibilities Curve Is