A point inside a production possibilities frontier
A) could indicate that some resources are unemployed.
B) is unattainable.
C) is more efficient than points on the production possibilities frontier.
D) implies that too much capital and not enough labor are being used.

Question

Quizplus · Accepted Answer

A point inside the production possibilities frontier indicates that not all resources are being used efficiently, suggesting some are unemployed or underutilized. Points on the frontier represent efficient use of resources, while points inside indicate inefficiency.

A Point Inside a Production Possibilities Frontier