If an economy is operating at a point that is inside of its production possibilities frontier,then it can be assumed that its resources are:

Question

Quizplus · Accepted Answer

If an economy is operating at a point inside its production possibilities frontier, it means it is not fully utilizing all its resources. This could be due to a lack of demand for goods and services or inefficiencies in resource allocation. Therefore, the best choice is D - underutilized.

If an Economy Is Operating at a Point That Is