A situation in which resources are either wasted or misallocated or both is illustrated by
A)a point above or to the right of the production possibilities frontier.
B)a point inside the production possibilities frontier.
C)any point on either the horizontal or the vertical axis.
D)a point on or inside the production possibilities frontier.
E)a point outside the production possibilities frontier.

Question

Quizplus · Accepted Answer

A point inside the production possibilities frontier (PPF) indicates that resources are not being used efficiently, either due to waste or misallocation, as the economy is producing less than it could if all resources were fully utilized.

A Situation in Which Resources Are Either Wasted or Misallocated