Consider an economy that is producing inside its production possibilities curve. This economy could move closer toward its production possibilities curve by
A) distributing incomes more equally.
B) employing more of its available resources.
C) increasing the levels of wages and prices.
D) acquiring additional resources.

Question

Quizplus · Accepted Answer

Employing more of its available resources will allow the economy to produce closer to its production possibilities curve. This can be achieved through factors such as increasing labor force participation, improving productivity, and investing in infrastructure and technology. The other options do not address the underlying issue of the economy not fully utilizing its available resources.

Consider an Economy That Is Producing Inside Its Production Possibilities