Choosing a combination of goods represented by a point inside the production possibilities frontier indicates:
A)that resources are not scarce.
B)that resources are scarce.
C)rational behavior.
D)irrational behavior.

Question

Quizplus · Accepted Answer

Choosing a point inside the production possibilities frontier indicates underutilization of resources, which is generally considered irrational because it means not all resources are being used efficiently.

Choosing a Combination of Goods Represented by a Point Inside