Use the following to answer question:
-(Figure: Production Possibility Frontier for Tealand)Use Figure: Production Possibility Frontier for Tealand.If Tealand is producing 10 million scones and 10 million cups of tea (point A),we know that the economy:
A)is using its resources efficiently.
B)is using its resources inefficiently.
C)is fully employing its resources.
D)has found new resources.

Question

Use the following to answer question: 
-(Figure: Production Possibility Frontier for Tealand)Use Figure: Production Possibility Frontier for Tealand.If Tealand is producing 10 million scones and 10 million cups of tea (point A),we know that the economy:
A)is using its resources efficiently. 
B)is using its resources inefficiently. 
C)is fully employing its resources. 
D)has found new resources.

Quizplus · Accepted Answer

If Tealand is producing at a point inside the Production Possibility Frontier (such as point A with 10 million scones and 10 million cups of tea), it means the economy is using its resources inefficiently because it could produce more of one or both goods without sacrificing anything.

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