If an economy is producing at a point inside a production possibilities curve:
A) the economy is efficient.
B) there is economic growth.
C) resources are unemployed.
D) resources are fully employed.

Question

Quizplus · Accepted Answer

If an economy is producing at a point inside a production possibilities curve, it means that the resources are not fully utilized and some of them are unemployed. Therefore, the economy is not efficient in utilizing its resources.

If an Economy Is Producing at a Point Inside a Production