If capital is not being used efficiently,an economy cannot be operating at a point along its production possibilities frontier.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum production potential of an economy given its resources and technology. If capital is not being used efficiently, it means the economy is not utilizing its resources to their full potential and therefore cannot be operating at a point along the production possibilities frontier.

If Capital Is Not Being Used Efficiently,an Economy Cannot Be