-Refer to the above diagram.If the production possibilities curve for an economy is at AB but the economy is operating at point 4,the reasons are most likely to be because of:

Question

Quizplus · Accepted Answer

The economy operating inside the production possibilities curve (at point 4) suggests underutilization of resources, which is often due to demand and efficiency factors, such as insufficient demand or inefficiencies in production.

-Refer to the Above Diagram