Producing at a point inside the production possibilities curve
A)Means society must be using its resources efficiently.
B)Is unattainable given the present level of technology.
C)Is feasible when the nation is at war but not feasible when the nation is at peace.
D)Suggests we are forgoing the ability to produce more of both goods.

Question

Quizplus · Accepted Answer

Producing at a point inside the production possibilities curve suggests that we are not utilizing all of our resources to their fullest capacity and are therefore foregoing the ability to produce more of both goods. This can happen when there is inefficiency in resource allocation, such as through unemployment or underutilization of resources.

Producing at a Point Inside the Production Possibilities Curve