Refer to the above graph.If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be:

Question

Quizplus · Accepted Answer

Point X is inside the production possibilities curve, which means that the economy is not utilizing all its resources efficiently. This could be due to factors such as lack of full employment and inefficient allocation of resources. Choices A, B, and C are not likely reasons for the economy to be operating below its production possibilities frontier.

Refer to the Above Graph