A situation in which some resources are NOT fully utilized is represented in a production possibilities frontier diagram by
A) any point on either the horizontal or the vertical axis.
B) the midpoint of the production possibilities frontier.
C) a point outside the production possibilities frontier.
D) a point inside the production possibilities frontier.

Question

Quizplus · Accepted Answer

A point inside the production possibilities frontier (PPF) indicates that not all resources are being used efficiently, meaning there is underutilization of resources. Points on the PPF represent efficient utilization, while points outside are unattainable with current resources.

A Situation in Which Some Resources Are NOT Fully Utilized