In terms of the production possibilities curve,inefficiency is represented by
A)All points on the curve.
B)All points outside the curve.
C)All points inside the curve.
D)A rightward shift of the curve.

Question

Quizplus · Accepted Answer

Inefficiency is represented by all points inside the production possibilities curve. These points represent a situation where resources are not being utilized to their full potential, and output levels are below what could be produced if resources were fully employed. Points on the curve represent full utilization of resources, while points outside the curve are unattainable given the current resources and technology. A rightward shift of the curve represents an increase in the production possibilities due to improvements in technology or increases in resources.

In Terms of the Production Possibilities Curve,inefficiency Is Represented by