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-(Figure: Production Possibility Frontier for Tealand) Use Figure: Production Possibility Frontier for Tealand. If Tealand is producing 10 million scones and 10 million cups of tea (point A) we know that the economy:

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-(Figure: Production Possibility Frontier for Tealand) Use Figure: Production Possibility Frontier for Tealand. If Tealand is producing 10 million scones and 10 million cups of tea (point A) we know that the economy:

Quizplus · Accepted Answer

If Tealand is producing at a point inside the Production Possibility Frontier (PPF), such as point A with 10 million scones and 10 million cups of tea, it indicates that the economy is using its resources inefficiently. This is because it could produce more of one or both goods without sacrificing the production of the other, assuming it moves to a point on the PPF.

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