If an economy operates at a point within its production possibilities curve,
A) it lacks the resources necessary to reach the curve.
B) it is utilizing all of its resources efficiently.
C) it does not confront the problem of scarce goods relative to unlimited wants.
D) it is not efficiently using all of its resources.

Question

Quizplus · Accepted Answer

When an economy operates within its production possibilities curve, it indicates that not all resources are being used efficiently, leading to underutilization.

If an Economy Operates at a Point Within Its Production