A country operating inside of its production possibilities frontier (PPF) is operating

Question

Quizplus · Accepted Answer

When a country operates inside its PPF, it is producing at a level lower than its potential maximum output. However, this area is still attainable, meaning that the country could produce at a higher level if it were to allocate resources more efficiently. Therefore, the country is operating inefficiently but still in an area that is attainable.

A Country Operating Inside of Its Production Possibilities Frontier (PPF)