A point outside a production possibilities curve reflects:

Question

Quizplus · Accepted Answer

A point outside a production possibilities curve is unattainable with the given state of technology and number of resources. It represents a combination of goods and services that cannot be produced given the current constraints on resources and technology. Therefore, choice B is the correct answer. The law of increasing costs (choice A) states that as the production of one good increases, the opportunity cost of producing the other good increases as well. Economic efficiency (choice D) refers to the production of goods and services at the lowest possible cost, given the available resources and technology. A point outside the production possibilities curve does not necessarily indicate less than full use of resources (choice C) because it is not possible to reach that point with the given resources and technology.

A Point Outside a Production Possibilities Curve Reflects