Suppose that an economy is currently producing at a point that lies inside of its production possibilities set. Which of the following would best explain this circumstance?
A) The prevailing level of technology prevents the economy from producing at a point closer to the frontier of the production possibilities set.
B) The economy is experiencing a high level of unemployment.
C) The economy does not have enough resources to produce at a point closer to the frontier of the production possibilities set.
D) Any of the above statements could explain this situation.
E) None of the above statements could explain this situation.

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The Answer of Suppose that an economy is currently producing at a point that lies inside of its production possibilities set. Which of the following would best explain this circumstance?
A) The prevailing level of technology prevents the economy from producing at a point closer to the frontier of the production possibilities set.
B) The economy is experiencing a high level of unemployment.
C) The economy does not have enough resources to produce at a point closer to the frontier of the production possibilities set.
D) Any of the above statements could explain this situation.
E) None of the above statements could explain this situation.

Suppose That an Economy Is Currently Producing at a Point