If an economy is producing at a point inside its production possibilities frontier

Question

Quizplus · Accepted Answer

If an economy is producing at a point inside its production possibilities frontier, it means it is not using all of its resources to produce goods and services. Therefore, it is possible to produce more of one good without giving up some of the other good. This indicates that the economy is not producing efficiently and there is room for growth and improvement.

If an Economy Is Producing at a Point Inside Its