When resources are being used wastefully or inefficiently, the
A) production possibilities curve shifts inward.
B) production possibilities curve shifts outward.
C) economy is operating at a point inside its production possibilities constraint.
D) economy is operating at a point outside its production possibilities constraint.

Question

Quizplus · Accepted Answer

When resources are being used wastefully or inefficiently, the economy is not producing at its maximum potential. This means it is operating inside its production possibilities constraint, which is represented by the production possibilities curve. Therefore, the correct answer is C.

When Resources Are Being Used Wastefully or Inefficiently, the