A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents
A) a tradeoff.
B) a free lunch.
C) full employment of labor but not capital.
D) unemployment of labor but not capital.
E) an infinite opportunity cost.

Question

Quizplus · Accepted Answer

A movement from a point inside the production possibilities frontier to a point on the frontier represents a "free lunch" because it indicates that resources are being used more efficiently, without having to give up the production of one good for another.

A Movement from a Point Inside the Production Possibilities Frontier