A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents
A) full employment of labour but not capital.
B) an infinite opportunity cost.
C) a free lunch.
D) a tradeoff.
E) unemployment of labour but not capital.

Question

Quizplus · Accepted Answer

A movement from a point inside the production possibilities frontier to a point on the frontier represents a "free lunch" because it indicates an increase in efficiency, utilizing resources that were previously underutilized without having to sacrifice the production of one good for another.

A Movement from a Point Inside the Production Possibilities Frontier