A point inside the production possibilities curve is:
A) attainable and the economy is efficient.
B) attainable,but the economy is inefficient.
C) unattainable and the economy is inefficient.
D) unattainable,but the economy is efficient.

Question

Quizplus · Accepted Answer

A point inside the production possibilities curve indicates that the economy is not using all of its available resources efficiently, as it is producing less than what it is capable of producing. However, the point is still attainable, meaning that the economy can produce at that level if it chooses to do so. Therefore, choice B is the correct answer.

A Point Inside the Production Possibilities Curve Is