Samʹs production possibilities frontier has good A on the horizontal axis and good B on the vertical axis. If Sam is producing at a point inside his frontier, then he
A) is fully using all his resources.
B) values good A more than good B.
C) values good B more than good A.
D) can increase production of both goods with no increase in resources.

Question

Quizplus · Accepted Answer

If Sam is producing inside his production possibilities frontier, it means he is not using all his resources efficiently. Therefore, he can increase the production of both goods without needing additional resources.

Samʹs Production Possibilities Frontier Has Good a on the Horizontal