If an economy is producing within its Production Possibility Frontier:
A) It is productively inefficient.
B) Customers are spending too much.
C) The economy's resources are fully employed.
D) Firms are maximizing profits.

Question

Quizplus · Accepted Answer

When an economy is producing within its Production Possibility Frontier (PPF), it means that not all resources are being used efficiently or to their full capacity, indicating productive inefficiency.

If an Economy Is Producing Within Its Production Possibility Frontier