Below is a production possibilities curve involving tea and videos.

-Refer to the graph above to answer this question.What might point U indicate?
A)Not all resources available to the economy are being used.
B)The resources being used are not being used efficiently.
C)The technology being used is not the most appropriate one.
D)All of these.

Question

Below is a production possibilities curve involving tea and videos.
 
-Refer to the graph above to answer this question.What might point U indicate?
A)Not all resources available to the economy are being used. 
B)The resources being used are not being used efficiently. 
C)The technology being used is not the most appropriate one. 
D)All of these.

Quizplus · Accepted Answer

Point U typically indicates a situation where the economy is not operating at its full potential. This can be due to underutilization of resources, inefficiency in how resources are being used, or the use of inappropriate technology, all of which prevent the economy from reaching its maximum output.

Below Is a Production Possibilities Curve Involving Tea and Videos