A point inside a production possibilities frontier
A)indicates some wasted or misallocated resources.
B)is unattainable.
C)is preferred to a point on the production possibilities frontier.
D)indicates a point of production efficiency.
E)illustrates the idea of opportunity cost.

Question

Quizplus · Accepted Answer

A point inside the production possibilities frontier indicates that resources are being underutilized or misallocated, leading to a loss in potential output. It is not a point of production efficiency and is generally not preferred to points on the production possibilities frontier which represent the full utilization of resources.

A Point Inside a Production Possibilities Frontier