If an economy is operating at a point inside the production possibilities frontier, then:
A) some of the economy's resources are unemployed.
B) the production decisions are made by the government.
C) unlimited resources must satisfy scarce desires.
D) using the existing resources efficiently will shift the production possibilities frontier outward.
E) society is paying too many wages.
Correct Answer:
Verified
Q123: Along a bowed-out production possibilities frontier, as
Q124: Exhibit 2.3 Q125: A straight-line production possibilities frontier indicates that Q126: A downward-sloping straight-line production possibilities frontier indicates Q127: On a bowed-out production possibilities frontier that
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