A point inside a production possibilities frontier
A) could indicate that resources are misallocated.
B) implies that too much labor and not enough capital is being used.
C) reflects the fact that more technology needs to be developed to fully employ all resources.
D) is more efficient than a point on the production possibilities frontier.

Question

Quizplus · Accepted Answer

A point inside a production possibilities frontier indicates that resources are not being used efficiently or effectively, which suggests that there may be a misallocation of resources.

A Point Inside a Production Possibilities Frontier