-Refer to the production possibilities frontier in the figure above. Which production point indicates that resources are NOT fully utilized or are misallocated?
A) point a
B) point b
C) point c
D) point e

Question

-Refer to the production possibilities frontier in the figure above. Which production point indicates that resources are NOT fully utilized or are misallocated?
A) point a 
B) point b 
C) point c 
D) point e

Quizplus · Accepted Answer

Point c indicates that resources are not fully utilized or are misallocated because it lies inside the production possibilities frontier, suggesting that more of at least one good could be produced without sacrificing the production of any other good.

-Refer to the Production Possibilities Frontier in the Figure Above