A point located inside a society's production possibilities curve represents

Question

Quizplus · Accepted Answer

A point located inside a society's production possibilities curve represents an under-utilization of productive resources, indicating that the society is not using all of its resources to produce its maximum possible output. It is generally less efficient than a point on the curve, where all resources are fully utilized. Option A is incorrect as an unattainable combination of outputs would lie outside the production possibilities curve. Option C is incorrect as a technically superior output combination would lie on the production possibilities curve, representing the maximum combination of goods that can be produced. Option D is incorrect as the needs of the population are subjective and cannot be determined solely by the point's location inside the production possibilities curve.

A Point Located Inside a Society's Production Possibilities Curve Represents