A point lying inside the production possibilities boundary is one at which
A)it is not possible to produce more output with existing resources.
B)there is no scarcity.
C)the opportunity cost of producing more output is negative.
D)more output could be produced with existing resources.
E)the economy has run out of resources.

Question

Quizplus · Accepted Answer

A point lying inside the production possibilities boundary indicates that the economy is not using all its resources efficiently but there is still room for production to be increased with the existing resources. Therefore, more output could be produced with existing resources, making option D the correct choice.

A Point Lying Inside the Production Possibilities Boundary Is One