Any point inside the production possibilities curve indicates
A) the presence of technological change.
B) that resources are imperfectly substitutable among alternative uses.
C) the presence of inflationary pressures.
D) that more output could be produced with the available resources.

Question

Quizplus · Accepted Answer

Any point inside the production possibilities curve indicates that resources are not fully utilized, which means that more output could be produced with the available resources. This is because the production possibilities curve represents the maximum output that can be produced with the given resources and technology, and any point inside the curve represents a suboptimal outcome where resources are not used to their full potential. The other options are not relevant to the concept of points inside the production possibilities curve.

Any Point Inside the Production Possibilities Curve Indicates