Which of the following is true if an economy is producing inside its production possibilities curve?

Question

Quizplus · Accepted Answer

If an economy is producing inside its production possibilities curve, it means that it is not using all of its available resources efficiently. This implies that more output can be produced with the existing resources if they are utilized efficiently. Therefore, option B is the correct answer. Option A is incorrect because it suggests that there are not enough resources available, which is not necessarily true. Option C is incorrect because it suggests that the available technology is limiting production, which may not always be the case. Option D is incorrect because the economy is not producing the maximum potential output if it is inside the production possibilities curve.

Which of the Following Is True If an Economy Is