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

Question

Quizplus · Accepted Answer

A movement from 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 sacrificing the production of one good for another.

A Movement from a Point Inside the Production Possibilities Frontier