In terms of the production possibility frontier, inefficient use of available resources is shown by:
A)an increase in the labor force growth rate.
B)a movement from one point to another along the production possibility frontier.
C)an inward shift of the production possibility frontier due to the lack of opportunity.
D)production at a point inside the production possibility frontier.

Question

Quizplus · Accepted Answer

When production occurs at a point inside the production possibility frontier, it means that not all available resources are being utilized efficiently as they could have been used to produce more output. This results in inefficiency and lower productivity. Therefore, production at a point inside the production possibility frontier indicates an inefficient use of available resources.

In Terms of the Production Possibility Frontier, Inefficient Use of Available