A point lying inside the production possibilities curve
A)indicates that resources are not being fully or efficiently used.
B)illustrates resources being used to their fullest potential.
C)requires more resources than are presently available.
D)represents an increase in resources.
E)is not an attainable combination.

Question

Quizplus · Accepted Answer

If a point lies inside the production possibilities curve, it means that it is below the maximum level of production that could be achieved with the given resources. This implies that some resources are not being fully or efficiently used, leading to an inefficient use of resources. Thus, option A is the correct answer.

A Point Lying Inside the Production Possibilities Curve