If an economy is operating at a point inside the production possibilities curve,
A) its resources are not being used efficiently.
B) the curve will begin to shift inward.
C) the curve will begin to shift outward.
D) This is a trick question because an economy cannot produce at a point inside the curve.

Question

Quizplus · Accepted Answer

When an economy is operating inside the production possibilities curve, it indicates that resources are not being used efficiently, as the economy is not producing at its maximum potential output.

If an Economy Is Operating at a Point Inside the Production