Consider a production possibility frontier for Italy.If in 2016 Italy's resources are not being fully utilized,Italy will be somewhere _____ of its production possibility frontier.
A)inside
B)outside
C)near the bottom
D)near the top

Question

Quizplus · Accepted Answer

When Italy's resources are not being fully utilized, it indicates that they are not able to produce at their maximum capacity. This, in turn, means that their production level is below their production possibility frontier. Therefore, the correct choice is inside the production possibility frontier.

Consider a Production Possibility Frontier for Italy