-If the economy were producing at 12 units of outboard motors and 8 units of robots
A)the economy would be at a point inside its production possibilities curve.
B)the economy would be at a point outside its production possibilities curve.
C)the economy would have unemployed resources.
D)the economy would be at a point inside its production possibilities curve AND would have unemployed resources.

Question

-If the economy were producing at 12 units of outboard motors and 8 units of robots
A)the economy would be at a point inside its production possibilities curve. 
B)the economy would be at a point outside its production possibilities curve. 
C)the economy would have unemployed resources. 
D)the economy would be at a point inside its production possibilities curve AND would have unemployed resources.

Quizplus · Accepted Answer

The production possibilities curve (PPC) represents the maximum output combinations of two goods that an economy can achieve when all resources are fully and efficiently employed. Being at a point inside the PPC indicates that the economy is not utilizing all its resources efficiently, which implies unemployment or underutilization of resources. Thus, both parts of option D are correct.

-If the Economy Were Producing at 12 Units of Outboard