If a nation is currently operating at a point inside its production possibilities curve,it
A)can increase the output of one good without decreasing the output of the other good.
B)has fully employed resources.
C)has no inefficiently employed resources.
D)is operating at full potential.
E)must reduce the output of one good to produce more of another good.

Question

Quizplus · Accepted Answer

When a nation is operating inside its production possibilities curve, it means that not all resources are being used efficiently. Therefore, it can increase the output of one good without decreasing the output of another, as it has the capacity to use its resources more effectively to increase production.

If a Nation Is Currently Operating at a Point Inside