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

In terms of the production possibilities curve, inefficiency is represented by points inside the curve. These are points where resources are not being fully utilized or are being used inefficiently, resulting in suboptimal output levels. All points on the curve represent maximum efficiency given the available resources, and all points outside the curve are unattainable with the current resources. A rightward shift of the curve represents an increase in the available resources or an improvement in technology, resulting in a higher potential output level for all points on the curve.

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